Attention Debt Collectors: New Rules Are On The Way

By on November 11, 2013

On November 6, 2013, the Consumer Financial Protection Bureau (the “CFPB”) formally issued an Advance Notice of Proposed Rulemaking focused on the governance of debt collectors.  Since its creation, the CFPB has been equipped with a wide range of enforcement and regulatory mechanisms, including but not limited to rulemaking.  While it is generally the case that the CFPB serves to provide guidance for the debt collection industry, the Advanced Notice of Proposed Rulemaking confirms that the CFPB intends to foster more rigid liabilities and obligations for debt collectors under federal law, including the Fair Debt Collection Practices Act (“FDCPA”).  In fact, the CFPB has suggested that the proposed rulemaking is necessary to update and supplement the FDCPA.  November 6, 2013 represents the start of a ninety (90) day comment period during which the CFPB will gather information, comments and suggestions from consumers, consumer advocates, debt buyers and debt collectors regarding the debt collection industry.  More specifically, the CFPB seeks to gather feedback in three (3) broad areas: (1) accuracy of the information debt collectors use; (2) ways to ensure that consumers have a clear understanding of their rights in the debt collection process; and (3) the communication tactics used by debt collectors.  Stay tuned . . .