CFPB Releases Fair Debt Collection Practice Act Report
On March 20, 2019, the Consumer Financial Protection Bureau (CFPB) issued a report to Congress on the Fair Debt Collection Practice Act (FDCPA). The 47-page report contains a lot of important statistics, including the fact that the CFPB received 81,500 complaints about debt collection in 2018. Debt collection is one of the most prevalent consumer complaints received by the CFPB and the most common debt collection complaint is about attempts to collect a debt that the consumer believes is not owed. The CFPB engaged in six enforcement actions in 2018 for alleged FDCPA violations. The CFPB also announced that it will issue a Notice of Proposed Rulemaking on debt collection in the spring of 2019. Even if your financial institution is not subject to FDCPA because you do not collect debts on behalf of others, the FDCPA still provides an excellent guide for your collection practices. Following the FDCPA can help you avoid claims of unfair, deceptive, or abusive acts or practices.
CLA’s financial institution regulatory compliance team assists banks and credit unions nationwide in establishing regulatory compliance programs, conducting compliance testing, and training staff on regulations. Justin Robinson is a member of CLA’s regulatory compliance team and can be reached at justin.robinson@CLAconnect.com.
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