The CFPB has outlined proposals under consideration that would overhaul the debt collection market by capping collector contact attempts and by helping to ensure companies collect the correct debt. Under the proposals being considered, debt collectors would be required to have more information about the debt before they collect. As they are collecting, companies would be required to limit communications, clearly disclose debt details and make it easier to dispute the debt. When responding to disputes, collectors would be prohibited from continuing to pursue debt without sufficient evidence. These requirements and restrictions would follow the debt if it were sold or transferred.
The outline of the proposals under consideration is in preparation for convening a Small Business Review Panel to gather feedback from small industry players, which is the next step in the rulemaking process. In addition to consulting with small business representatives, the bureau will continue to seek input from the public, consumer groups, industry and other stakeholders before continuing the rulemaking process.