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Consumer Financial Protection Bureau

Welcome to ACA's Consumer Financial Protection Bureau (CFPB) Resource Center.

“Most importantly we are in the early stages of overhauling…the debt collection industry.”
~CFPB Director Richard Cordray, before the House Committee on Financial Services, June 18, 2014.

This is a critical time for the credit and collection industry.  After concluding an Advanced Notice of Proposed Rulemaking in February 2014, the CFPB is now poised to issue a Proposed Rule that is expected to mark the most significant legal change to how debt collection is conducted in the United States since enactment of the federal Fair Debt Collection Practices Act (“FDCPA”) in 1977.  ACA is actively engaged in this process, working hard to ensure that the CFPB has an accurate and fair understanding of how its proposed policy changes will impact the collection industry.  Both through formal and informal advocacy, ACA is committed to educating the CFPB on how the credit and collection industry really works and the crucial role this industry plays in the American economy.

Below, ACA members will find a continually updated repository of CFPB-related materials.  From valuable compliance and training information for both our smaller members and our larger market participant members, to ACA advocacy efforts and CFPB activity, ACA has created this comprehensive CFPB Resource Center to help your business remain informed. 

The CFPB and Debt Collection

In 2010, the Dodd-Frank Act revised the FDCPA and created the CFPB to protect consumers from “unfair, deceptive, or abusive” acts or practices.  This law gives the CFPB the authority to regulate banks, credit unions, securities firms, payday lenders, mortgage-servicing operations, foreclosure relief services, debt collectors and other financial companies.  The CFPB began its work in July 2011 and in January 2012, President Obama appointed Richard Cordray to be the CFPB’s first director.

From a collections industry perspective, the CFPB joins the Federal Trade Commission (“FTC”) as the industry’s regulator with jurisdiction over the FDCPA.  However, unlike the FTC who only has enforcement power and therefore must rely on Congress to pass legislation in order for changes to debt collection laws to occur, the CFPB has the power to make rules independently, along with examination authority and the responsibility for oversight of consumer complaints about debt collection.

It is important to note that the CFPB has rulemaking and enforcement authority over all players in the collections industry.  As a result, all debt collectors need to ensure that they have an effective compliance management system in place for their businesses to avoid violating federal consumer financial laws and causing consumer harm.  Be sure to stay informed and on top of your CFPB compliance obligations by visiting ACA International’s Resource Center often for valuable training opportunities, updates, and alerts.

 
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