CFPB Holds 2019 Advisory Committee Summer Meetings

Roundtable discusses proposed debt collection rule.

6/6/2019 1:30 PM

NewsCFPB
CFPB Holds 2019 Advisory Committee Summer Meetings

On Thursday, June 6, the Consumer Financial Protection Bureau held its Summer 2019 Advisory Committee meetings in Washington, D.C. One session of the Combined Advisory Committee Roundtable focused on the Notice of Proposed Rulemaking (NPRM) relating to debt collection.

In her opening remarks, CFPB Director Kathy Kraninger gave an overview of the proposed rules and noted their importance as a means of providing clarity so that consumers can know their rights and debt collectors their limits. Nevertheless, Director Kraninger emphasized the proposed rules are, at this point, still a “proposal” and that the bureau “hope[s] to get a lot of data and evidence” from interested parties during the comment period.

In additional opening comments, the CFPB’s Kristin McPartland, counsel, Office of Regulations, described the nature and scope of the proposed rules. Of note was her characterization of the proposed limits on calls as a “bright-line rule.”

The Advisory Committees include members of the Credit Union Advisory Council, Community Bank Advisory Council, and the Consumer Advisory Board, with both consumer advocates and the financial services industry represented.

Advocacy groups articulated several outstanding concerns. Specifically, it was suggested that rather than providing consumers with options to opt-out of certain types of communications, consumers should be given the choice to opt-in. There were also concerns that the proposed limitations on calls remain too permissive and suggested that there should be further research into the efficacy of calling consumers less often.

For their part, the financial services industry representatives noted that there needs to be further clarification, particularly with regard to communications and new technologies including AI platforms, webpage chat boxes, and cell phones used by consumers for both work and personal purposes. It was also noted that some of the proposed information to be included on validation notices could potentially put consumers at risk for identity theft.

ACA International is soliciting feedback from its members on the proposed rule in order to provide informed guidance to the CFPB to ensure the best possible outcome for ACA members. It is critical for the industry to be engaged in this process and to work closely with ACA as it continues to advocate for additional clarity for the accounts receivables management industry. Every response is a valuable contribution to the success of this survey.

 

 


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