The ARM industry’s “must attend” fall event attracts top experts to lead thoughtful sessions and provide news on important trends. Editor’s note: This content is available for members only.
11/11/2019 7:30
During a “fireside chat” with ACA International CEO Mark Neeb last week, CFPB regulator Tom Pahl, policy associate director for research, markets and regulations with the Consumer Financial Protection Bureau, discussed various aspects of the CFPB’s first-ever proposed rule for the Fair Debt Collection Practices Act and ACA’s comments in response to it. During the discussion, he indicated that there could be a supplemental proposal and comment period concerning time-barred debts, which led other panels at the event to question whether this would delay or slow a final rule.
While members anxiously await release of the final rule, ACA continues to advocate for improvements to the proposal in its 154 pages of comprehensive comments.
Pahl responded to various questions about the proposal from Neeb, including how the bureau derived the number seven as the weekly frequency limit. Pahl suggested the seven calls per seven-day cap and the seven-day cooling off period after a conversation takes place, is an attempt to provide clarity. “We’re trying to be responsive to consumers who think they are being contacted too much, but we realize that collections require communications, and there may not be opportunities or methods of communications like text messaging. This is why we need comments from you – and we’ve received comments from you.”
He said the CFPB seeks to balance the new rule with the needs of both the industry and consumers. During the CFPB’s 120-day open comment period on the rule, Pahl noted the bureau received 19,000 comments “which we are reviewing and deciding how to respond to.”
When Neeb inquired whether the bureau studied the impact and regulatory burdens implementing the new rule will have on small firms’ budgets, Pahl indicated that this is on the bureau’s radar and factored into the year-long implementation period.
Recent decisions coming from the bureau demonstrate that ACA’s advocacy is paying off. Earlier this fall, the CFPB announced long-awaited updates to its Consumer Complaint Database. The bureau is making changes to its website to provide disclosures on the nature of complaints as well as resources to consumers, including:
- More prominently display disclosures making it clear that the Consumer Complaint Database is not a statistical sample of consumers’ experiences in the marketplace;
- Highlighting the availability of answers to common financial questions for consumers to help inform them before they submit a complaint; and
- Highlighting consumers ability to contact the financial company directly to get answers to their specific questions
Pahl highlighted the new educational materials available on the website that help consumers better find the answers, rather than encouraging questions to be submitted as complaints.
“We’ve provided FAQs so that consumers will understand there are more options than going to the consumer complaint database,” he said. “Maybe consumers don’t understand why a debt collector is calling them or why debt collection companies do certain things. By directing them to FAQs, we hope the consumers will become educated about debt collections, and come to us for serious complaints.”
Another issue ACA has long advocated to change involves the CFPB’s failure to appropriately contextualize to the complaints. Pahl confirmed the bureau is continuing to review this aspect of ACA’s concerns. However, they have yet to contextualize complaints at this point.
Pahl’s participation was well received by Fall Forum & Expo attendees who spent three days in Chicago updating their skills and networking their peers.
The CFPB debt collection rulemaking has been discussed various times in Congress in recent weeks including in a House Financial Services Committee, the Senate Banking Committee, and hearing focused specifically on the debt collection industry. The House Financial Services Committee will also be marking up several debt collection related bills on Wednesday, Nov. 13.
ACA will continue to provide extensive coverage of all issues associated the CFPB rulemaking and other related topics.
If you missed this year’s event in Chicago, consider joining us next year in Texas, Nov. 4-6, 2020, for Fall Forum & Expo at the Omni Frisco Hotel in Dallas. See you then!
Pictured above: ACA International CEO Mark Neeb and CFPB Policy Associate Director for Research, Markets and Regulations Tom Pahl.