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Option 1: CFPB Debt Collection Plan Doesn't Spare Community Banks

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In May 2019, the CFPB issued a Notice of Proposed Rulemaking (NPRM) for the Fair Debt Collection Practices Act (FDCPA); how has this rule updated the antiquated FDCPA? the NPRM will likely have a dramatic impact on collection practices for debt collectors.

When the CFPB Bureau published its NPRM to implement the FDCPA, Director Kraninger said that the CFPB intends to modernize the legal regime for debt collection.

The NPRM seeks to update the antiquated FDCPA in numerous ways, including:

1. The Rules should should provide consumers with clear protections against harassment by debt collectors, as well as straightforward options to address or dispute debts.
2. The Rules should set clear, bright-line limits on the number of calls debt collectors could place to reach consumers on a weekly basis.
3. The Rules should clarify how collectors may lawfully communicate with consumers using newer technologies, such as voicemails, emails, and text message – all of these mediums of communication were developed after the FDCPA was passed in 1977
4. The Rules should require collectors to provide additional information to consumers to help them identify debts and respond to collection attempts. The proposed rule would require debt collectors to send consumers a disclosure with certain information about the debt and related consumer protections.

Attend this webinar to take a deep dive into the detailed components of the proposed debt collection regulations.

Learn more about Carly Souther’s webinar Collecting Past Due Accounts and CFPB Compliance

First published on 10/11/2020

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