For the past year, the industry’s attention has been focused on the Debt Collection Rule (the “Rule”), its changes, and the new expectations it will place on debt collectors; but as the rubber meets the road, collection...more
With the CFPB having decided to leave the effective date of the Debt Collection Rule as November 30th, the push is on for debt collectors to ensure their compliance with the Rule by that date. As debt collectors make the...more
Last month, the entire ARM industry was caught by surprise when the Eleventh Circuit held that a debt collector’s transmittal of information to a third-party letter vendor violated Section 1692c(b) of the FDCPA. Hunstein v....more
The FDCPA provides a bona fide error defense for debt collectors who can show by a preponderance of the evidence that their violation was not intentional and resulted from a bona fide error notwithstanding the maintenance of...more
On April 6th, the CFPB announced its proposal to postpone the effective date of the Debt Collection Rule. Originally scheduled to take effect November 30, 2021, the CFPB now proposes that the Rule become effective on January...more
Section 1692a(3) defines a consumer as any natural person obligated or allegedly obligated to pay a consumer debt. The final debt collection rule interprets the definition of a consumer to include deceased natural...more
While it remains to be seen what, if any, changes a change in leadership in the CFPB will bring to the Debt Collection Rule, for now collection agencies should begin readying themselves for a November 30th effective date. Now...more
On December 18, 2020, the CFPB published the remainder of its Final Debt Collection Rule (the “Rule”) highlighting its crown jewel - the provisions centering around debt validation notices. While the bulk of Part 2...more
The Sixth Circuit recently weighed in on whether there is a “benign language” exception to Section 1692f(8) of the Fair Debt Collection Practices Act (the “FDCPA”). In Donovan v. FirstCredit, Inc., No. 20-3485, 2020 U.S....more
On October 30, 2020, the CFPB published its long awaited Final Debt Collection Rule (the “Rule”) which is intended to interpret the federal Fair Debt Collection Practices Act (the “FDCPA”) and clarify how new communication...more
The CFPB has issued its semi-annual report to Congress. The Report, which covers April through September of 2019, is mandated by Dodd-Frank and was released in conjunction with Director Kraninger’s testimony to the House...more
2/10/2020
/ Annual Reports ,
Consumer Complaint System ,
Consumer Financial Protection Bureau (CFPB) ,
Credit Reporting Agencies ,
Credit Scores ,
Debt Collection ,
Debt Collectors ,
Dodd-Frank ,
Financial Services Committee ,
Financial Services Industry ,
Proposed Rules ,
Rulemaking Process
The CFPB has issued a Statement of Policy which seeks to “convey and foster greater certainty above the meaning of abusiveness” and provide a framework for its exercise of supervisory and enforcement authority as to abusive...more
1/31/2020
/ Abusive Acts ,
Consumer Financial Products ,
Consumer Financial Protection Bureau (CFPB) ,
Covered Entities ,
Enforcement Actions ,
Enforcement Authority ,
Enforcement Guidance ,
Financial Services Industry ,
Good Faith ,
Policy Statement ,
Remedies ,
Restitution ,
Safe Harbors ,
Unfair or Deceptive Trade Practices
The CFPB’s 2020 Rulemaking Agenda provides a preview of the Bureau’s intended rulemaking activities for 2020. Here are the highlights of what we can look forward to in 2020:
Business Lending Data (Pre-rule Stage): Under...more
1/7/2020
/ Consumer Financial Products ,
Consumer Financial Protection Bureau (CFPB) ,
Debt Collection ,
Final Rules ,
Financial Services Industry ,
HMDA ,
Mortgages ,
NPRM ,
Payday Lending Rule ,
Proposed Rules ,
Regulatory Agenda ,
Rulemaking Process ,
Small Business
More than five years after it issued its Advanced Notice of Proposed Rulemaking, the CFPB appears poised to issue its proposed debt collection rules. The first hint that this was imminent came in the fall of 2018 when the...more
4/24/2019
/ Advanced Notice of Proposed Rulemaking (ANPRM) ,
Consumer Financial Products ,
Consumer Financial Protection Bureau (CFPB) ,
Consumer Lenders ,
Debt Collection ,
Debt Collectors ,
Dispute Resolution ,
Electronic Communications ,
FDCPA ,
SBREFA ,
Third-Party
The CFPB has issued its Semi-Annual Report to Congress for the time period beginning April 1, 2018 and ending September 30, 2018. The Report is the first issued by newly confirmed Director Kathy Kraninger and outlines the...more
3/1/2019
/ Advanced Notice of Proposed Rulemaking (ANPRM) ,
Consumer Complaint System ,
Consumer Financial Protection Bureau (CFPB) ,
Credit Reporting Agencies ,
Credit Reports ,
Debt Collection ,
Debt Collectors ,
FDCPA ,
Information Reports ,
Mortgage Lenders ,
Mortgage Servicers ,
Mortgages ,
Payday Lending Rule ,
Rulemaking Process ,
SBREFA
For the first time in over a year, the CFPB has issued a Complaint Snapshot. A practice started by Cordray in 2015, the report is a high level snapshot of trends in consumer complaints and provides a summary of the volume of...more
In a case of first impression, the Fifth Circuit has held that the CFPB’s Mortgage Servicing Rules only apply to servicers and do not impute liability to the lender. In Christiana Trust v. Riddle, the consumer alleged that...more
District Court Takes Expansive View of Deceptive or Misleading Practices under FDCPA -
The FDCPA prohibits a debt collector from using "any false, deceptive, or misleading representation" in connection with the collection...more
5/11/2018
/ Administrative Appointments ,
Article III ,
ATDS ,
Collection Agencies ,
Consumer Financial Products ,
Consumer Financial Protection Bureau (CFPB) ,
Credit Reports ,
Debt Collection ,
Disclosure Requirements ,
FCC ,
FDCPA ,
Fees ,
Financial Services Industry ,
Foreclosure ,
Interest Accrual ,
Proposed Legislation ,
Safe Harbors ,
Strategic Enforcement Plan ,
TCPA ,
Unfair or Deceptive Trade Practices
On April 19, 2018, the CFPB’s Successor in Interest Rules take effect. Here’s what you need to know:
What do the Successor in Interest Rules require?
The Rules are really modifications to the Mortgage Servicing Rules...more
The CFPB has issued its semi-annual report to Congress, leaving little doubt as to the agenda of Acting Director, Mick Mulvaney. While the information contained in the actual report is largely inconsequential, it is...more
The House Financial Services Committee voted 35-25 on March 21, 2018 to advance H.R. 5082, officially known as the “Practice of Law Technical Clarification Act of 2018,” to the full House of Representatives. The bill, if...more
The CFPB recently issued its second Quarterly Consumer Credit Trends Report which examines the impact of changes to credit reporting regarding the reporting of civil public records. ...more
Last week, the CFPB issued its Strategic Plan for Fiscal Years 2018-2022. The Plan reflects Acting Director Mick Mulvaney’s vision for the CFPB and reflects a contrasting vision to what was reflected in the prior draft which...more
A recent opinion from a district court in California serves as a reminder to creditors and debt collectors of the limited circumstances upon which convenience fees can be collected. ...more
On November 24, 2017, the White House appointed Mick Mulvaney as acting director of the CFPB, effective November 27, 2017. Since then, concerns have been raised that Mulvaney might ‘gut” the agency. Here is a quick look at...more