ACA Advises BCFP to Avoid a ‘One Size Fits All’ Approach in Rulemaking


6/20/2018 8:00 AM

Association submits comments to bureau in response to RFI on adopted regulations and new rulemaking authorities.

AdvocacyDailyCFPB

ACA International supports the Bureau of Consumer Financial Protection’s authority to update and streamline outdated provisions for rules under the Fair Debt Collection Practices Act. As such, the association on Tuesday submitted comments to the bureau in response to its “Request for Information Regarding the Bureau’s Adopted Regulations and New Rulemaking Authorities.”

While Congress passed the FDCPA in 1977 to eliminate deceptive, unfair and abusive conduct by third-party debt collectors, at the time of its enactment, lawmakers failed to provide regulators with rulemaking authority. “The result has been 40 years of inconsistent interpretation of the law by the courts,” Mark Neeb, ACA’s CEO said in the comment letter. “ACA welcomes the opportunity to work with the bureau to address onerous provisions and interpretations of the FDCPA, which often do not account for modern technology and consumer preferences.”

“With this new authority to write rules, however, the bureau must recognize the complexity of the marketplace and avoid seeking a ‘one size fits all’ approach,” Neeb wrote. “Finally, the bureau must institute a rigorous cost-benefit analysis and consider the impacts rules will have on industry as well as consumers in order to meet statutory objectives.”

Among other highlights related to the complexity of the debt collection marketplace, ACA advised the bureau to “consider that many third-party debt collectors will simply not have the infrastructure necessary to implement the complex compliance requirements likely to result from certain types of debt collection regulation.”

ACA’s recent response to the bureau’s “Request for Information Regarding Rulemaking Processes” noted repeatedly that the bureau must work toward “clarifying legal obligations for debt collectors and solving problems for consumers and regulated entities.”

To read ACA International’s full comment letter, click here.

Follow ACA International on Twitter @ACAIntl and @acacollectorFacebook and request to join our LinkedIn group for news and event updates. ACA International members are welcome to submit news items for possible publication to comm@acainternational.org. Visit our publications page for news submission guidelines and subscriptions to ACA Daily, Collector magazine and Pulse. Advertising is available for companies wishing to promote their products or services. Be sure to visit the ACA Events Calendar on the Education and Training website to view our listing of upcoming CORE Curriculum and Hot Topic seminars featuring critical educational opportunities for your company.

NEWSROOM

Loading...

Loading...