The bureau is reviewing comments on the effective date extension as well as a proposed rule on financial institutions’ use of artificial intelligence.
6/15/2021 14:00
The Consumer Financial Protection Bureau has released its latest rulemaking agenda with an update on Reg F and the process to extend the effective date of the final debt collection rule from Nov. 30, 2021, to Jan. 29, 2022.
“The agenda lists the regulatory matters that, to further our consumer protection mission and mandate, we are currently pursuing under interim leadership pending the appointment and confirmation of a permanent director,” according to a blog post on the agenda from Assistant Director, Regulations Susan Bernard.
Changes to the regulatory agenda from the bureau’s permanent director will be reflected in the fall rulemaking agenda.
David Uejio is currently serving as acting director of the bureau while President Joe Biden’s nominee for director, Rohit Chopra, awaits confirmation by the U.S. Senate. Chopra serves as a commissioner on the Federal Trade Commission, which is made up of five commissioners including the chair, with no more than three coming from the same political party. With the recent confirmation of Biden nominee Lina Khan, the FTC will maintain a Democrat majority. Khan’s confirmation is sure to move along the Senate’s process to vote on the confirmation for Chopra as director of the Consumer Financial Protection Bureau. If he is confirmed, Chopra will have to resign from the FTC, leaving Biden one more commissioner spot to fill and to announce a permanent chair. Rebecca Slaughter is currently serving as acting chair of the FTC.
“We have also taken actions, and plan further actions, to focus our resources on addressing the adverse impacts to consumers in light of the ongoing COVID-19 pandemic and resulting economic crisis, and are taking concrete steps toward furthering our commitment to promoting racial and economic equity,” Bernard wrote in the blog post.
Debt Collection Rulemaking Effective Date
In April, the CFPB proposed to delay the effective date of Reg F to allow stakeholders in the accounts receivable management (ARM) industry affected by the pandemic additional time to review and implement Reg F, ACA International previously reported.
The bureau’s next action is a final rule on whether and for how long to extend the effective date of Reg F after reviewing submitted comments, according to Bernard.
Comments on the rule were due in May. In its comments, ACA urged the CFPB to be transparent about the reasoning behind the proposed delay in the effective date, ACA previously reported.
For more information on ACA’s advocacy and work with regulators and Congress, visit the ACA Policymakers website.
Additional highlights from the CFPB’s Spring Rulemaking Agenda:
- The bureau issued an interim final rule concerning the eviction moratorium issued by the U.S. Centers for Disease Control and Prevention (CDC). The interim rule, which was issued on April 19 and therefore is not listed in the latest rulemaking agenda, addresses certain debt collector conduct associated with the CDC’s eviction moratorium order, which is in effect until June 30, 2021. ACA filed comments on the interim final rule in May after collecting member feedback from those impacted by it. The rule seeks to clarify accountability for illegal evictions under the Fair Debt Collection Practices Act. The CFPB rule requires “debt collectors” to provide written notice to tenants of their rights under the eviction moratorium and prohibits “debt collectors” from misrepresenting tenants’ eligibility for protection from eviction under the moratorium, ACA previously reported. Attorneys who engage in eviction proceedings on behalf of landlords or residential property owners to collect unpaid residential rent may be “debt collectors” as defined by the FDCPA. “In its outreach to membership, ACA only heard from one member, out of 2,100, who is connected to this type of debt collection,” said Vice President and Senior Counsel of Federal Advocacy Leah Dempsey. “However, we can assume there are likely a limited number of other members throughout the country that are connected to the landlord-tenant relationship by providing debt collection services for unpaid legal obligations.”
- The bureau is also considering a long-term rule on artificial intelligence. The Federal Reserve Board, CFPB, Federal Deposit Insurance Corporation, National Credit Union Administration and the Office of the Comptroller of the Currency announced a request for information (RFI) to gain input from financial institutions, trade associations, consumer groups and other stakeholders on the growing use of artificial intelligence, ACA previously reported. More specifically, the RFI seeks comments to better understand the use of artificial intelligence, including machine learning, by financial institutions; appropriate governance, risk management and controls over artificial intelligence; challenges in developing, adopting and managing artificial intelligence; and whether any clarification would be helpful. Comments are due July 1.
Additional regulatory activities at the bureau include issuing a notice of proposed rulemaking on small business lending data and consideration of rulemaking to implement Section 1033 of the Dodd-Frank Act, which would address the availability of consumer financial account data in electronic form.
The CFPB’s complete Spring Rulemaking Agenda is available here.