The CFPB has moved a step closer to issuing a debt collection rule by releasing an outline of the proposals it is considering in preparation for convening a small business review panel. The Small Business Regulatory Enforcement Fairness Act and the Dodd-Frank Act require the CFPB to convene such a panel when developing rules that may have a significant economic impact on a substantial number of small businesses. While changes may result from input provided by the small entity representatives selected to meet with the panel, the outline is a strong indicator of the approach the CFPB is likely to take in a proposed debt collection rule.
Perhaps most surprising is the CFPB’s decision to limit the proposals’ coverage to “debt collectors” that are subject to the Fair Debt Collection Practices Act. The proposals include debt substantiation requirements, requirements to provide certain information in connection with debt transfers, changes to the FDCPA validation notice, a new “Statement of Rights,” new disclosures for time-barred debts, and limits on collector communications.
Our legal alert containing a detailed summary of the outline is available here.
On August 31, 2016, Ballard Spahr attorneys will hold a webinar “The CFPB’s Debt Collection Rulemaking – A Review of the Bureau’s SBREFA Outline and Where We Think It’s Headed” from 12 p.m. to 1 p.m. ET. The webinar registration form is available here.