Discussion during FICO webinar focused on the FCC, CFPB and state-level rules and legislation impacting accounts receivable management companies and how the results of the 2020 election could change these developments. Editor’s note: This article is available for members only.
8/27/2020 9:15
A wave of change for the accounts receivable management (ARM) industry could be coming as 2020 ends. The Consumer Financial Protection Bureau is set to issue its final debt collection rule this year; the November 2020 election could shake things up on key committees considering legislation impacting the ARM industry; and states are proceeding with bills on licensing and regulation as well as short-term rules on debt collection.
These topics were at the center of the discussion during a Aug. 25 webinar hosted by FICO, “Federal and State Debt Collection Policy: The Path Ahead,” with ACA International’s Vice President and Senior Counsel of Federal Advocacy Leah Dempsey and Vice President of Government and State Affairs Andrew Madden and Daniel Nestel, senior director of government relations at FICO.
The complimentary webinar from FICO, an ACA member company in Fairfax, Virginia, focused on the latest developments for collection professionals on the legislative and regulatory fronts after the emergence of COVID-19 and what to expect in the first half of 2021.
Topics included:
- Key state/local and federal developments in response to the COVID-19 health emergency;
- The recent U.S. Supreme Court decision on the leadership structure of the Consumer Financial Protection Bureau and what it means for the bureau’s final debt collection rule;
- An update on the New York City Department of Consumer Affairs Foreign Language Services Rules;
- The latest on the Telephone Consumer Protection Act and the potential impact of the upcoming U.S. Supreme Court review of the law;
- Ongoing implementation of robocall legislation and the impact of the Federal Communications Commission’s July 16 order related to call-blocking and labeling measures.
Here are a few highlights of the discussion between Dempsey, Madden and Nestel:
CFPB Final Debt Collection Rule
The CFPB announced in its spring rulemaking agenda that it expects to take final action on the proposed debt collection rule in October 2020.
The agenda was released after the U.S. Supreme Court issued its decision in Seila Law v. Consumer Financial Protection Bureau, stating that the CFPB's leadership structure is unconstitutional. Read ACA’s report on the decision.
The decision could have major implications on the debt collection rule since it is an election year and the sitting president can now remove the CFPB director for any reason. However, for now the bureau is on track to release the final rule in October, according to its agenda.
“Overall, we think it’s an important step in the right direction,” Dempsey said, when asked about the rule. “Any change in administration this fall could put this rule in jeopardy or bring about changes. All eyes are on the election to determine if changes will follow.”
Federal Communications Commission, Call Blocking and Labeling and the TRACED Act
“Call labeling, call authentication and call blocking continue to be on the front burner for the industry,” Nestel said.
Regarding the Telephone Robocall Abuse Criminal Enforcement and Deterrence (TRACED) Act, the FCC has several deadlines to meet under the law and is seeking public comment on measures such as call blocking and labeling and mitigating unlawful robocalls.
The FCC is proceeding with a proposed rule on revisions to its rules implementing the TRACED Act and comments are due Aug. 31, 2020. ACA has been involved in advocacy on the TRACED Act every step of the way and secured significant changes that are beneficial to the industry before it was signed into law last year.
“I think this is a good example of why advocacy is a process and not an event,” Dempsey said.
Federal and State Legislation and Economic Stimulus Talks in Congress
"We’re expecting a much thinner package possibly wrapped up in the larger budget, yet we’re concerned because of pieces of legislation still out there that would have a huge impact on the industry,” Dempsey said, when asked about the stimulus funding at the core of debate in Congress during the last several months.
Madden discussed state rules in New York and the debt collection regulations in Washington, D.C.
“In D.C., we are hoping for a drawing back of regulations, where any COVID- related debt collections regulations would no longer be a one-size-fits-all, but be considered on more of a case-by-case basis,” Madden said.
He reflected on the process used in New York City to add new rules that require debt collectors to inform consumers about whether certain language access services are available and to retain records relating to language access services.
The process lacked stakeholder input on the front end, but ACA, the New York State Collectors Association, Receivables Management Association International, National Creditors Bar Association and the New York State Creditors Bar Association were later able to meet with the New York City Department of Consumer Affairs (DCA).
“Local governments like [New York City] promulgated a new set of debt collection rules during the COVID-19 crisis, which were voted on in May and took effect [in] late June but instituted a grace period until Oct 1. I think you will see other local governments closely watching what [New York City] has done,” Madden said.
As a result of the stakeholder meetings, the DCA issued Frequently Asked Questions (FAQs) on the rules and extended enforcement to Oct. 1, 2020.
Overall, most of the discussion came back to the impact the election will have on all these topics.
Decisions made on Capitol Hill, in federal agencies and in the states are playing a major role in shaping the future of the ARM industry.
“The election is going to drive all public policy next year,” Madden said.
Related content from ACA International:
FCC Releases Request for Comment on Proposed Rule on Unlawful Robocalls and Call Blocking
TRACED Act Timeline: What’s Next for the Legislation in 2020
Member Alert: NYC DCA Extends Enforcement of Foreign Language Services Rules to Oct. 1
CFPB Issues Rulemaking Agenda with October 2020 Deadline for Debt Collection Rules
For more information on how the ACA Licensing staff can assist with your licensing needs, please contact us at [email protected] or call (952) 926-6547.