Debt Collection NPRM

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While the CFPB has maintained for over a year that the final rules will be published by the end of October, it appears that we may not have to wait that long. We are hearing from multiple, independent sources that the CFPB is likely to publish its final collections rules by October 16, and possibly, as early as this week.… Continue Reading

The topics we discuss are: implications of the SCOTUS Seila Law decision on CFPB rules, past consent orders, ongoing enforcement, and the Texas lawsuit challenging the CFPB payday loan rule; DOJ/FTC auto dealer fair lending actions, status of disparate impact, and Google targeted advertising changes; the CFPB’s new advisory opinion program; timing of CFPB debt collection final rule; and OCC/FDIC final rules to undo Madden and plans to address “true lender.”… Continue Reading

Comment period extension.  Yesterday, the CFPB announced a second 60-day extension of the comment period for its supplemental proposal that would require debt collectors to make specified disclosures when collecting time-barred debts.  The CFPB previously extended the initial May 4 comment deadline until June 5.  The new comment deadline is August 4, 2020. … Continue Reading

Our discussion examines a range of issues, including how the wording of the model forms could create consumer confusion, challenges in determining whether a debt is time-barred, and questions arising from use of a “know or reason to know” that a debt is time-barred standard to trigger disclosures.  We also look at industry’s reaction and how the proposal’s finalization is likely to fit with the CFPB’s issuance of a final larger debt collection rule.… Continue Reading

In light of the disruption caused by the COVID-19 pandemic, ACA International has asked the CFPB for a 30-day extension of the deadline for filing comments on its supplemental debt collection proposal.  The proposal would require debt collectors to make specified disclosures when collecting time-barred debts.  The current comment deadline is May 4, 2020.… Continue Reading

The CFPB has issued a proposal that would require debt collectors to make specified disclosures when collecting time-barred debts (Disclosure Proposal).  The Disclosure Proposal supplements the Bureau’s proposed debt collection rule issued in May 2019 (May Proposal).  Comments on the Disclosure Proposal must be filed no later than 60 days after the date it is published in the Federal Register. … Continue Reading

Our podcast looks at industry and consumer comments and perspectives on key issues, including the proposal’s potential implications for creditors collecting their own debts through UDAAP/UDAP and state collection laws, its approach to electronic communications and “meaningful attorney involvement,” and whether a final rule should address information transfers and file reviews or collecting time-barred debt. … Continue Reading

The Consumer Bankers Association (CBA) has filed a letter commenting on the CFPB’s proposed debt collection rule.  Ballard Spahr served as counsel to the CBA in preparing the comment letter.

In the letter, the CBA urges the Bureau to make various revisions and clarifications to the proposal, including the following:

  • Taking the following steps to remove any uncertainty about the potential application of the final rule to creditors: (1) rely solely on the Bureau’s FDCPA authority for all provisions of the final rule, (2) include an explicit statement in the final rule that it is not intended to apply, and should not be applied, to creditors and servicers not covered by the FDCPA, and (3) state that the definition of “debt collector” in the final rule is not intended to expand the FDCPA’s coverage to creditors and servicers.
… Continue Reading

In this podcast, we team with Bridgeforce, a leading financial services consultancy, to discuss how companies can prepare their operations should the CFPB’s proposed debt collection rule become final.  We look at the operational approaches available to companies in implementing the rule and legal considerations raised by each, the need for an assessment of assets before selecting an approach and the role of legal advice, and the role of future planning.… Continue Reading

In this podcast, we examine the compliance challenges arising from the provision of the CFPB’s proposed debt collection rule that allows collectors to leave a limited content phone message that would not violate the FDCPA’s third party disclosure prohibition.  In addition to the requirement for a collector to leave the name of a natural person for the consumer to contact, we discuss the proposal’s prohibition on leaving the collector’s name, the CFPB’s rationale for the prohibition, potential state law concerns, and implications for first party collections.… Continue Reading