Debt Collection

CBA responded to the CFPB’s Advanced Notice of Proposed Rulemaking (ANPR) on debt collections. In its notice, the Bureau cites it is the first agency with the authority to issue substantive rules under the Fair Debt Collection Practices Act (FDCPA), a law governing the practices of third-party collectors and debt buyers. The Bureau may address first-party debt collection activities under its unfair, deceptive and abusive practices (UDAAP) authority. The ANPR is the Bureau’s initial step towards issuing new rules regulating the relationship between creditors, third-party debt collectors and consumers.
  • December 27, 2016
    On Tuesday, December 27, 2016, the CFPB released its Monthly Complaint Snapshot highlighting consumer complaints about debt collection, most commonly about attempts to collect debt the consumer claims is not owed. December’s report also highlighted complaint trends in Arizona, where debt collection complaints were most frequent, followed by mortgage-related complaints. Nationally, again, the “...
  • November 2, 2016
    On Wednesday, November 2, 2016, the CFPB, in partnership with the New York Attorney General, filed a lawsuit in a federal district court against the leaders of an alleged debt collection scheme based out of Buffalo, N.Y. The lawsuit alleges Douglas MacKinnon and Mark Gray operate a network of companies that harass, threaten, and deceive millions of consumers across the nation into paying inflated...
  • October 27, 2016
    On Thursday, October 27, 2016, the CFPB Consumer Advisory Board (CAB) met in Washington, D.C. to discuss debt collection and student loan serving. In his prepared remarks , CFPB Director Richard Cordray asserted one in three consumers (70 million) were contacted by a debt collector in the past year and discussed the two-pronged approach to the debt collection proposal – one for third party debt...
  • August 9, 2016
    As Maine gripes, so gripes the nation. That twist on an old saying means the top consumer complaint heard by the federal Consumer Financial Protection Bureau, or CFPB, deals with bill collection. Of the roughly 400 complaints filed yearly with Maine’s Bureau of Consumer Credit Protection, or BCCP, about 100 concern debt collectors. In late July, the CFPB made public a proposal to strengthen the...
  • August 8, 2016
    Aug. 2 — Banks may have dodged the brunt of new Consumer Financial Protection Bureau proposals on debt collection, but they won't escape compliance costs for documentation requirements third-party collectors face under the agency's regulatory framework. The bureau announced a regulatory outline July 28 that would overhaul the debt collection market by capping collector contact attempts and by...
  • August 1, 2016
    Debt collectors are bracing for the impact from the latest sweeping new move by the Consumer Financial Protection Bureau, an effort to crack down on harassment and abuses by companies trying to collect from consumers. The firms that collect outstanding debts on behalf of lenders say they're worried about the new rules the bureau is proposing, which would limit the ways they can contact debtors...
  • July 28, 2016
    Washington, D.C. (July 28, 2016) – Richard Hunt, President and CEO of the Consumer Bankers Association (CBA), today released the following statement in response to the CFPB’s issuance of a SBREFA outline on debt collection. “We appreciate the Bureau’s efforts to tailor these rules and set clear expectations for consumers and industry. The Bureau recognizes the importance of distinguishing between...
  • July 28, 2016
    On Thursday, July 28, 2016, the CFPB held a field hearing in Sacramento, CA on debt collection reforms. The Bureau also released an outline of proposals for third-party debt collectors as well as a study on its operations. The outline will be the subject of a forthcoming Small Business Regulatory Enforcement Fairness Act (SBREFA) panel for debt collectors and debt buyers. The Bureau is expected...
  • July 15, 2016
    The CFPB announced it will hold a field hearing in Sacramento, CA on Thursday, July 28, 2016, focused on debt collection. The hearing will likely focus on third-party debt collectors, collection attorneys and debt buying firms. The Bureau has not released a list of participants, though such hearings traditionally include representatives of various consumer groups and industry participants to...
  • April 25, 2016
    On Monday, April 25, 2016, the CFPB entered into a consent order with a debt collection law firm Pressler & Pressler LLP and debt buying firm New Century Financial Services, Inc. The Bureau alleges the firm engaged in violations of the Fair Debt Collection Practices Act and the ban on unfair, deceptive or abusive acts and practices when it “filed hundreds of thousands of lawsuits against...

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