From the Web: ACA Leaders Weigh in on Advocacy with CFPB

An American Banker article quotes Leah Dempsey and Mark Neeb on parts one and two of the CFPB’s final debt collection rule, advocacy and clarifications as leadership may change at the bureau when President-elect Joe Biden takes office.

1/6/2021 6:30 AM

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From the Web: ACA Leaders Weigh in on Advocacy with CFPB

A new administration will soon lead in Washington with President-elect Joe Biden’s inauguration just two weeks away—and, according to American Banker, appointing a new director of the Consumer Financial Protection Bureau could come as soon as this month.

But where the CFPB’s final debt collection rule, which takes effect Nov. 30, 2021, will stand on a new director’s priority list for potential change is unknown.

Leah Dempsey, ACA’s vice president and senior counsel of federal advocacy, discussed these trends and activity on Capitol Hill during a Jan. 5 ACA Huddle.

“We will continue to push for needed clarifications,” Dempsey said, as quoted in a recent American Banker article (a subscription may be required). “Our advocacy on behalf of the industry is not done."

Part one of the CFPB’s rule, primarily focused on communications issues, was released in October and was followed by part two Dec. 18 with details on consumer disclosures and validation notices as well as out-of-statute (time barred) debt.

The rule supports several key issues ACA has long sought clarity on, including safe harbor procedures for the use of voicemail messages and the ability to use modern forms of communication, such as text messaging and email (although with some arguably complex compliance burdens).

When the bureau issued its Supplemental Notice of Proposed Rulemaking on out-of-statute debt in February 2020, ACA was concerned that it may result in a new layer of obligations for the ARM industry as well as a continued lack of clarity and litigation unless the CFPB is able to preempt existing state laws and the accumulation of court decisions interpreting these requirements, ACA previously reported.

ACA provided extensive comments on disclosures and out-of-statute debt to the CFPB throughout the rulemaking process.

“The actions taken [by the CFPB] in the final rule miss the mark in providing clarity to the industry and consumers to untangle a complex regulatory environment in this area of the law,” Neeb said in a recent press release about the regulation of out-of-statute debt.


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

From the Web: ACA Leaders Weigh in on Advocacy with CFPB

A new administration will soon lead in Washington with President-elect Joe Biden’s inauguration just two weeks away—and, according to American Banker, appointing a new director of the Consumer Financial Protection Bureau could come as soon as this month.

But where the CFPB’s final debt collection rule, which takes effect Nov. 30, 2021, will stand on a new director’s priority list for potential change is unknown.

Leah Dempsey, ACA’s vice president and senior counsel of federal advocacy, discussed these trends and activity on Capitol Hill during a Jan. 5 ACA Huddle.

“We will continue to push for needed clarifications,” Dempsey said, as quoted in a recent American Banker article (a subscription may be required). “Our advocacy on behalf of the industry is not done."

Part one of the CFPB’s rule, primarily focused on communications issues, was released in October and was followed by part two Dec. 18 with details on consumer disclosures and validation notices as well as out-of-statute (time barred) debt.

The rule supports several key issues ACA has long sought clarity on, including safe harbor procedures for the use of voicemail messages and the ability to use modern forms of communication, such as text messaging and email (although with some arguably complex compliance burdens).

When the bureau issued its Supplemental Notice of Proposed Rulemaking on out-of-statute debt in February 2020, ACA was concerned that it may result in a new layer of obligations for the ARM industry as well as a continued lack of clarity and litigation unless the CFPB is able to preempt existing state laws and the accumulation of court decisions interpreting these requirements, ACA previously reported.

ACA provided extensive comments on disclosures and out-of-statute debt to the CFPB throughout the rulemaking process.

“The actions taken [by the CFPB] in the final rule miss the mark in providing clarity to the industry and consumers to untangle a complex regulatory environment in this area of the law,” Neeb said in a recent press release about the regulation of out-of-statute debt.


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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