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CFPB Issues Updated Debt Collection Examination Procedures

CFPB logoThe updates for regulated entities reflect requirements for communicating with consumers, the limited-content message, credit reporting and more.

03/15/2022 4:00 P.M.

2 minute read

The Consumer Financial Protection Bureau has updated its debt collection examination procedures to reflect requirements for regulated entities under Regulation F.

These procedures include guidance for examination of all aspects of debt collection, according to the CFPB’s summary.

The examination procedures contain a series of modules, grouping similar requirements together. Depending on the scope, and in conjunction with the compliance management system and consumer complaint response review procedures, each examination will cover one or more of the following modules:

  1. Entity Business Model
  2. Communications in Connection with Debt Collection
  3. Information Sharing, Privacy, and Interactions with Consumer Reporting Agencies
  4. Validation Notice, Consumer FDCPA Disputes and Complaints, and Ceasing Communication
  5. Payment Processing and Account Maintenance
  6. Equal Credit Opportunity Act
  7. Litigation Practices, Administrative Wage Garnishment and Repossession, and Time-Barred Debt

The examination procedures contain several modules with the updates for Reg F:

  • In Module 2: Communications in Collection with Debt Collection, it addresses the FDCPA and Unfair, Deceptive, Abusive Acts or Practices (UDAAP) that may arise when entities communicate or attempt to communicate with consumers or third parties as part of their debt collection activities. The section addresses the limited-content message and attempts to communicate with a consumer under Reg F.
  • In Module 3, Information Sharing, Privacy and Interactions with Consumer Reporting Agencies, it addresses the specific requirements related to information sharing, privacy and interactions with consumer reporting agencies under the Gramm Leach Bliley Act and Regulation P; the Fair Credit Reporting Act and Regulation V; and the FDCPA and Regulation F. It notes that Regulation F prohibits “passive collections,” that is, the regulation requires debt collectors to complete a specified action or actions to notify consumers about a debt before furnishing information regarding the debt to a consumer reporting agency.
  • In Module 4, Validation Notice, Consumer FDCPA Disputes and Complaints, and Ceasing Communication, it addresses consumer inquiries, complaints, and FDCPA disputes, as well as the debt verification obligations imposed by the FDCPA (where applicable). This review assesses whether complaints are resolved adequately and in a timely manner, whether they reflect any potential violations of federal consumer financial law, and whether the entity has a process in place to analyze and address any underlying sources or systemic reasons for any law violations revealed by the complaints. This module covers the model validation notice under Reg F.

You can find the updated debt collection exam procedures here and Reg F compliance resources from ACA International on the Reg F Resource Center.

ACA’s compliance team will provide more guidance on the CFPB’s exam procedure updates for members.

If you have executive leadership updates or other member news to share with ACA, contact our communications department at comm@acainternational.org. View our publications page for more information and our news submission guidelines here.

   

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