The report serves as a measure of the bureau’s examination work in the industry.
2/24/2020 8:30
Observations in the Consumer Financial Protection Bureau’s latest Supervisory Highlights report are a tool accounts receivable management industry companies can use to gauge compliance with federal consumer financial laws and limit risks to consumers.
The report, including examination findings from April 2019 and August 2019, focuses on debt collection, mortgage servicing, payday lending, and student loan servicing.
Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, the bureau is authorized to supervise banks and credit unions with more than $10 billion in assets, as well as certain nonbanks.
Examinations of larger participant debt collectors, according to the report, show one or more violations of the Fair Debt Collection Practices Act including failure to disclose that communication is from a debt collector and send notice of debt in writing within five days after initial communication with a consumer.
The report shares information regarding general supervisory and examination findings and the bureau’s supervisory program but does not impose any new or different legal requirements than those in relevant laws and regulations. The information is disseminated to help institutions better understand how the bureau examines institutions for compliance, according to the CFPB.
In both instances of FDCPA violations detailed in the report, the collectors updated their FDCPA compliance policies and procedure, audit programs and staff training.
Read the complete Supervisory Highlights report from the bureau here.
For more insights on CFPB policies and compliance, register for ACA International’s popular Keep Calm and Prevent UDAAP Core Curriculum seminar Feb. 27. The seminar, with Certified Instructors Leslie Bender, IFCCE, CCCO, chief strategy officer and general counsel at BCA Financial Services Inc., and Debra Ciskey, IFCCE, executive vice president of The Collections Coach LLC, follows the release of the CFPB’s long-awaited policy statement on supervision and enforcement actions. Bender and Ciskey will review federal guidelines for Unfair, Deceptive, or Abusive Acts or Practices using the new information from the CFPB.
Meanwhile, this month the CFPB also updated its Fair Credit Reporting Act exam procedures based on new obligations created under the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA). It applies to larger market participants in the consumer reporting market, meaning credit bureaus, resellers, specialty consumer reporting agencies, and analyzers of consumer report information with more than $7 million in annual receipts from consumer reporting.