Tabs

Bank/Thrift Supervision   |    Capital    |    CFPB    |    Deposit Insurance    |    Interchange    |    Mortgage Finance
Municipal Advisors   |    OCC-OTS Merger   |    Preemption    |    QM - QRM    |    Swaps   |    Volcker Rule    |    Full Topics List
 
Qualified Mortgage - Qualified Residential Mortgage
Swaps
Consumer Financial Protection Bureau - CFPB
Bank/Thrift Holding Company Supervision
Capital
Deposit Insurance
Interchange
Mortgage Finance
Municipal Advisors
OCC-OTS Merger
Preemption
Volcker Rule
Corporate Governance
Financial Stability Oversight Council (FSOC)
Appraisals
Office of Financial Research (OFR)
Systemic Risk
Supervision and Oversight
Payment, Clearing and Settlement
Prudential Supervision
Trust & Securities
Asset-Backed Securities
Resolution Authority

Wednesday, March 5, 2014

ABA, Groups Urge CFPB to Prioritize Debt Collection Rulemaking

ABA and two other trade groups expressed their support for the CFPB’s goal of modernizing rules under the Fair Debt Collection Practices Act. However, the groups opposed “the wholesale extension of the FDCPA to first-party creditors using the Bureau’s rulemaking authority … to prohibit unfair, deceptive, or abusive acts and practices.”

Explaining that the collection of delinquent debt is vital to the availability and affordability of consumer credit, the groups urged the CFPB to “prioritize and sequence its policy initiatives, beginning with those issues that present the greatest risk to consumers…. Given that complaint data show that consumer concerns are several times more likely to be expressed about third-party debt collectors than first-party creditors, priority should be assigned to reforming that segment of the industry first.”

The groups also underscored the importance of customer engagement with banks from the earliest stages of delinquency to help customers avoid late fees, minimize negative impacts to their credit report, avoid account closures, and take advantage of loss mitigation. “[I]t is essential that any new rules promote, not inhibit, customer engagement,” the groups wrote.

The CFPB issued an advance notice of proposed rulemaking in November seeking information on debt collection. The notice included 162 questions that cover the debt collection industry and procedures, collectors’ interactions with borrowers and issues relating to state law and the federal FDCPA, which the Dodd-Frank Act amended in order to give the CFPB rulemaking authority.

Read the letter.

3 comments:

kate sumner said...
This comment has been removed by a blog administrator.
Augustine Cristian said...
This comment has been removed by a blog administrator.
Best SEO said...
This comment has been removed by a blog administrator.

Post a Comment

Please read our comment policy before making a comment.