CFPB is Assessing Time-Barred Debt Disclosures; Possible Action in January

Latest agenda from bureau reflects regulatory reform priorities following issuance of the proposed debt collection rule in May.

11/22/2019 7:00 AM

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CFPB is Assessing Time-Barred Debt Disclosures; Possible Action in January

The Consumer Financial Protection Bureau is continuing to focus on its Notice of Proposed Rulemaking (NPRM) for the debt collection industry including testing of consumer disclosures related to time-barred debt not included in the May 2019 proposal, according to its fall rulemaking agenda.

An additional rulemaking update classified as “other” on the timeline for the debt collection NPRM is expected in January 2020.

“After testing, the bureau will assess whether to issue a supplemental NPRM seeking comments on any disclosure proposal related to the collection of time-barred debt,” the agenda states.

In its current state, the proposed debt collection rule includes:

  • Certain disclosures, such as an itemization of the debt and plain-language information about how a consumer may respond to a collection attempt, including by disputing the debt.
  • Methods by which debt collectors may lawfully use newer communication technologies, such as voicemails, emails and text messages.
  • Methods by which collectors may provide required disclosures electronically, for example, by email or text message.
  • Call frequency limits of no more than seven attempts by telephone per week; prohibiting call attempts within 7 days of a telephone conversation.
  • Out-of-statute debt collection, by prohibiting suits and threats of suit on time-barred debts and requiring communication with the consumer before credit reporting.

In general, when it comes to time-barred debt, Section 1006.26 of the current proposed rule would prohibit a debt collector from suing or threatening to sue on a debt if the debt collector knows or should know that the applicable statute of limitations has expired, ACA International previously reported.

The CFPB received more than 14,000 comments on the proposed rule before the September 2019 deadline, including a comprehensive response from ACA International and many submissions from members.

Now, the updated fall rulemaking agenda includes regulatory items the CFPB “reasonably anticipates” it will consider from Oct. 1, 2019 to Sept. 30, 2020 and reflects Director Kathy Kraninger’s focus to protect consumers and minimize regulatory burden, including facilitating industry compliance with rules. 

The CFPB also continues to review more than 190,000 comments on its NPRM relating to reconsideration of the mandatory underwriting requirements for the 2017 Payday, Vehicle Title, and Certain High-Cost Installment Loans rule.  The comment period for the NPRM closed in May 2019 and the CFPB expects to make a final rule in April 2020.

Overall priorities outlined in the fall rulemaking agenda include implementing statutory directives, promoting competition, increasing transparency, and preserving fair markets as well as new projects and further planning.

The CFPB also continues to monitor markets for consumer financial products and services to identify risks to consumers and the proper functioning of such markets as required by the Dodd-Frank Act. Market monitoring assists the bureau in identifying issues as a source of potential future rulemaking.

Read more on the fall rulemaking agenda here.

For more information on how the ACA Licensing staff can assist with your licensing needs, please contact us at licensing@acainternational.org or call (952) 926-6547.


Follow ACA International on Twitter @ACAIntl and @acacollector, Facebook 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 page to view our listing of upcoming CORE Curriculum and Hot Topic seminars featuring critical educational opportunities for your company.


Subscribe to ACA Daily NEWSROOM

CFPB is Assessing Time-Barred Debt Disclosures; Possible Action in January

The Consumer Financial Protection Bureau is continuing to focus on its Notice of Proposed Rulemaking (NPRM) for the debt collection industry including testing of consumer disclosures related to time-barred debt not included in the May 2019 proposal, according to its fall rulemaking agenda.

An additional rulemaking update classified as “other” on the timeline for the debt collection NPRM is expected in January 2020.

“After testing, the bureau will assess whether to issue a supplemental NPRM seeking comments on any disclosure proposal related to the collection of time-barred debt,” the agenda states.

In its current state, the proposed debt collection rule includes:

  • Certain disclosures, such as an itemization of the debt and plain-language information about how a consumer may respond to a collection attempt, including by disputing the debt.
  • Methods by which debt collectors may lawfully use newer communication technologies, such as voicemails, emails and text messages.
  • Methods by which collectors may provide required disclosures electronically, for example, by email or text message.
  • Call frequency limits of no more than seven attempts by telephone per week; prohibiting call attempts within 7 days of a telephone conversation.
  • Out-of-statute debt collection, by prohibiting suits and threats of suit on time-barred debts and requiring communication with the consumer before credit reporting.

In general, when it comes to time-barred debt, Section 1006.26 of the current proposed rule would prohibit a debt collector from suing or threatening to sue on a debt if the debt collector knows or should know that the applicable statute of limitations has expired, ACA International previously reported.

The CFPB received more than 14,000 comments on the proposed rule before the September 2019 deadline, including a comprehensive response from ACA International and many submissions from members.

Now, the updated fall rulemaking agenda includes regulatory items the CFPB “reasonably anticipates” it will consider from Oct. 1, 2019 to Sept. 30, 2020 and reflects Director Kathy Kraninger’s focus to protect consumers and minimize regulatory burden, including facilitating industry compliance with rules. 

The CFPB also continues to review more than 190,000 comments on its NPRM relating to reconsideration of the mandatory underwriting requirements for the 2017 Payday, Vehicle Title, and Certain High-Cost Installment Loans rule.  The comment period for the NPRM closed in May 2019 and the CFPB expects to make a final rule in April 2020.

Overall priorities outlined in the fall rulemaking agenda include implementing statutory directives, promoting competition, increasing transparency, and preserving fair markets as well as new projects and further planning.

The CFPB also continues to monitor markets for consumer financial products and services to identify risks to consumers and the proper functioning of such markets as required by the Dodd-Frank Act. Market monitoring assists the bureau in identifying issues as a source of potential future rulemaking.

Read more on the fall rulemaking agenda here.

For more information on how the ACA Licensing staff can assist with your licensing needs, please contact us at licensing@acainternational.org or call (952) 926-6547.


Follow ACA International on Twitter @ACAIntl and @acacollector, Facebook 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 page to view our listing of upcoming CORE Curriculum and Hot Topic seminars featuring critical educational opportunities for your company.


Subscribe to ACA Daily NEWSROOM

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