In this podcast, we discuss in detail certain provisions of the CFPB’s Proposed Debt Collection Rule that create the possibility of a collector providing disclosures to consumers by means of electronic communications. Among other things, we detail the scope, requirements and limitations related to such electronic communications, review the logistical challenges the Rule poses as to electronic communications and compare and contrast these requirements to those of the ESIGN Act.… Continue Reading
Debt Collection NPRM
Seventh Circuit FDCPA decision has implications for CFPB’s approach to validation notices in its proposed debt collection rules
By Ballard CFS Group on
In its proposed debt collection rules, the CFPB would allow a debt collector to satisfy the FDCPA requirement to provide the validation notice by sending the debtor an email or text message that includes a hyperlink to a secure website on which the notice is accessible, subject to a series of specific conditions set forth in the proposed rules. … Continue Reading
This week’s podcast: A look at how the CFPB’s proposed debt collection rules could impact the student loan industry
By Barbara S. Mishkin on
In this podcast, we look at the unique challenges that the CFPB’s proposal may create for student loans. Our discussion focuses on how the proposal’s call attempt limits, time/place limits for calls, texts, and e-mails, and special restrictions that apply to the aggregation of multiple student loans could impact communications with borrowers.… Continue Reading
CFPB Touts Settlement with Debt Collection Group as Focus on Debt Collection Continues
By Lindsay C. Demaree on
The CFPB’s focus on debt collection continues. In addition to proposing changes to debt collection rules, analyzing debt collector trade lines, and filing and participating as an amicus in debt-collection litigation, the CFPB recently announced a proposed settlement involving over $60 million in redress and penalties with debt collection companies Northern Resolution Group, LLC, Enhanced Acquisitions, and Delray Capital, and the companies’ creators, Douglas MacKinnon and Mark Gray.… Continue Reading
CFPB extends comment deadline for proposed debt collection rules
By Ballard CFS Group on
In a notice to be published in tomorrow’s Federal Register, the CFPB is extending the comment deadline for its proposed debt collection rules until September 18. The proposal’s initial 90-day comment period was set to expire on August 19.
The Bureau states in the notice that it received two written requests from consumer advocates and an industry trade group asking for either a 60- or 90-day extension of the comment period. … Continue Reading
This week’s podcast: What the CFPB’s proposed debt collection rules mean for the mortgage industry
By Barbara S. Mishkin on
In this podcast, we focus on provisions of the proposed rules that are of particular interest to the mortgage industry. In addition to the special consumer definition, we look at the alternative content allowed in the validation notice and issues raised by the need to include the amount of the debt. … Continue Reading
Consumer groups seek extension of comment deadline for CFPB proposed debt collection rules
By Ballard CFS Group on
Seven consumer advocacy groups have submitted a letter to Director Kraninger requesting a two-month extension of the August 19 comment deadline for the CFPB’s proposed debt collection rules.
The groups state in their letter that “there are very few organizations that represent the interests of people subject to debt collection that have the expertise and capacity to analyze the complex proposal and to respond with detailed analyses in light of the current state of the law and practice and of the impacts of the proposed changes on consumers.” … Continue Reading
Mortgage-specific provisions in the CFPB’s proposed debt collection rules
By Reid F. Herlihy on
Continuing our coverage of the CFPB’s proposed debt collection rules, this blog post will focus on a few provisions that pertain specifically to mortgage servicers.
In part, the proposal continues the CFPB’s efforts to harmonize mortgage servicing regulation (which generally promotes communication with consumers) and debt collection regulation (which generally restricts communication with consumers). … Continue Reading
To call or not to call: the NPRM’s proposed call frequency and time/place limitations
By Ballard CFS Group on
In this blog post, we attempt to dissect and explore the Bureau’s proposed call frequency and time/place limitations in the recently-released debt collection NPRM.
Proposed Call Frequency Limitations
First, let’s tackle the proposed call frequency limitations. Section 1006.14(b)(2) prohibits attempting to call (note the use of the word “call,” as opposed to “communicate with”) a consumer about a debt more than seven times within seven consecutive days. … Continue Reading
CFPB publishes debt collection proposed rule; Ballard Spahr to hold May 14 webinar
The CFPB has published its long-awaited notice of proposed rulemaking under the Fair Debt Collection Practices Act (FDCPA). The proposed rule would apply only to debt collectors covered by the FDCPA, although creditors and servicers acquiring debts before default will feel its impact as well.
On May 14, 2019, from 12 p.m.… Continue Reading