CFPB Alters Plan for Debt Collection Regs

by Jeff Sovern

Last summer, the CFPB issued a document indicating its tentative plan for third-party debt collector regulation, and saying that it was going to move forward on first-party debt collectors separately. Today, CFPB Director Richard Cordray gave a speech saying that in light of feedback the Bureau had received, it has:

now decided to consolidate all the issues of “right consumer, right amount” into the separate rule we will be developing for first-party creditors, which will now cover these intertwined issues for third-party collectors and debt buyers as well. That way, we can address this entire set of considerations, market-wide.

In the meantime, we will be able to move forward more quickly with a proposed rule focused on the remaining issues. These issues, again, are information third-party collectors must disclose to people about the debt collection process and their rights as consumers, and ensuring that third-party collectors treat people with the dignity and respect they deserve. Once we proceed with a proposed rule on these issues, we will return to the subject of collecting the right amount from the right consumer, which is a key objective regardless of who is collecting the debt. * * *

0 thoughts on “CFPB Alters Plan for Debt Collection Regs

  1. Tony Quart says:

    Thanks. I hope this rule will make those debt collectors stop harassing people with fake debts and outstanding amounts of debts. I read at about this collection calls problem, and I think this is one of the biggest complaint that has been reported by consumers. I personally get 2-3 calls each week from unknown debt collectors. I don’t have any debts right now. I really hope that the government will find an effective way on how to make them stop.

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