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,
Debt Collection NPRM
Update on recent non-COVID-19-related consumer financial services legal developments
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…
CFPB extends comment period for supplemental debt collection proposal; states take emergency SOL actions
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. The…
This week’s podcast: A close look at the CFPB’s supplemental proposal requiring disclosures by debt collectors for time-barred debts
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…
ACA International asks CFPB to extend comment period for supplemental debt collection proposal
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.
CFPB issues proposed rule to require debt collectors to make disclosures for time-barred debts
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…
This week’s podcast: Update on the CFPB’s proposed debt collection rule
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. …
Consumer Bankers Association comments on CFPB’s proposed debt collection rule
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
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This week’s podcast: Implementing the CFPB’s proposed debt collection rule: operational and legal issues
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…
This week’s podcast: Limited content messages under the CFPB’s proposed debt collection rule
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…