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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.
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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

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

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

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

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

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

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

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

The CFPB has published its Spring 2019 rulemaking agenda as part of the Spring 2019 Unified Agenda of Federal Regulatory and Deregulatory Actions, which is coordinated by the Office of Management and Budget (OMB).  It represents the CFPB’s first rulemaking agenda under Director Kraninger’s leadership.  The agenda’s preamble indicates that the information in the agenda is current as of March 6, 2019 and identifies the regulatory matters that the Bureau “reasonably anticipates having under consideration during the period from May 1, 2019 to April 30, 2020.”… Continue Reading