CFPB Releases Highly Anticipated Fair Debt Collection Proposal
On May 7, 2019, the Consumer Financial Protection Bureau (CFPB) issued a Notice of Proposed Rulemaking (proposal) to implement the Fair Debt Collection Practices Act (FDCPA). The 538 page proposal would do the following:
- Limit debt collectors to no more than seven attempts by telephone per week to contact a consumer about a debt.
- Require debt collectors to send consumers a disclosure with information about the debt and specific consumer protections. The disclosure would include a “tear-off” that consumers could send back to the debt collector to respond to the collection attempt.
- Clarify how debt collectors can communicate with consumers via email and text messages.
- Provide how consumers may easily limit ways debt collectors could contact them while at work or during certain hours.
- Prohibit a debt collector from suing or threatening to sue a consumer to collect a debt if the debt collector knows or should know that the statute of limitations has expired.
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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