In an interview with The Washington Post, Mark Neeb discusses the impact of the bureau’s latest rulemaking proposal on businesses and consumers. Editor’s Note: This article is available for members only.
2/26/2020 14:00
ACA International is advocating for the Consumer Financial Protection Bureau to take a second look at disclosure requirements and communication with consumers on out-of-statute debt in its additional proposed rulemaking released last week; which CEO Mark Neeb discussed in a recent interview with The Washington Post reporter Renae Merle.
Neeb noted the importance of preserving the industry’s ability to collect on the out-of-statute debts, when it is permissible by federal and state law, to limit harm to credit markets.
“There is a large gap between not being able to sue on a debt and not being able to collect on it at all. That is a bridge too far for us,” Neeb told Merle, adding that it’s a benefit to consumers to understand their rights when it comes to late-stage debts; and debt collectors can help under a rulemaking that balances business and consumer rights.
“But given the statute of limitations can vary depending on the state, type of debt or even where a purchase is made, forcing debt collectors to make detailed disclosures could be complicated,” Neeb explained in the interview. “It puts debt collectors in a position of giving legal advice to consumers,” Neeb said. “And it’s pretty complicated.”
Meanwhile, ACA continues to review the proposal and will seek feedback in the wake of its previous calls for guidance concerning the collection of out-of-statute debt. ACA will also seek member feedback on whether the supplemental proposal, including the model language and forms, provides the necessary guidance and clarity for the ARM Industry and consumers related to the collection of out-of-statute debt. On March 4, ACA is hosting an hour-long Hot Topic Webinar, "ACA’s Efforts to Lead the ARM Industry through the CFPB’s Next Steps in Rulemaking Concerning Out-Of-Statute Debt," to provide a more detailed summary of the proposal.
The CFPB announced the additional proposed disclosure requirements for out-of-statute debt in the SNPRM released Feb. 21. It has not yet been published in the Federal Register but will be open for public comment for 60 days once it is.
ACA members may read more here: CFPB’s Disclosure Requirements for Out-of-Statute Debt Need a Second Look