From the Web: ‘Will Banks Be Swept into the CFPB’s Debt Collection Rule?’

First-party creditors are concerned the CFPB’s proposal could extend past regulations for third-party debt collectors.

11/26/2019 9:00 AM

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From the Web: ‘Will Banks Be Swept into the CFPB’s Debt Collection Rule?’

Reported broad language in the Consumer Financial Protection Bureau’s proposed rule for the debt collection industry has banks worried they will be subject to regulations, according to an article in American Banker.

The CFPB has long said, since the notice of proposed rulemaking process started years ago, that the Fair Debt Collection Practices Act regulations are for third-party collectors and there may be separate rules for banks; but according to the recent report [a subscription may be required to view the article] banks worry the proposal would “ensnare” them.

Accordingly, ACA International has worked closely with financial institution trade associations in Washington, D.C. to outline any joint concerns about the proposed rule to the CFPB.

Banks are concerned prohibition of unfair, deceptive or abusive acts or practices (UDAAP) in the Dodd-Frank Act and the CFPB’s proposed rulemaking would affect their industry and reverse previous court rulings that banks collecting their own debts are not classified as debt collectors under the FDCPA.

Comment letters from the banking industry to the CFPB reflect these concerns.

“The proposal will introduce substantial uncertainty and legal risk for first-party creditors” like banks, Diana Banks, senior counsel for fair and responsible banking at the American Bankers Association, wrote in a comment letter to the bureau, according to American Banker.

Read the complete article here. [A subscription may be required.]


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: ‘Will Banks Be Swept into the CFPB’s Debt Collection Rule?’

Reported broad language in the Consumer Financial Protection Bureau’s proposed rule for the debt collection industry has banks worried they will be subject to regulations, according to an article in American Banker.

The CFPB has long said, since the notice of proposed rulemaking process started years ago, that the Fair Debt Collection Practices Act regulations are for third-party collectors and there may be separate rules for banks; but according to the recent report [a subscription may be required to view the article] banks worry the proposal would “ensnare” them.

Accordingly, ACA International has worked closely with financial institution trade associations in Washington, D.C. to outline any joint concerns about the proposed rule to the CFPB.

Banks are concerned prohibition of unfair, deceptive or abusive acts or practices (UDAAP) in the Dodd-Frank Act and the CFPB’s proposed rulemaking would affect their industry and reverse previous court rulings that banks collecting their own debts are not classified as debt collectors under the FDCPA.

Comment letters from the banking industry to the CFPB reflect these concerns.

“The proposal will introduce substantial uncertainty and legal risk for first-party creditors” like banks, Diana Banks, senior counsel for fair and responsible banking at the American Bankers Association, wrote in a comment letter to the bureau, according to American Banker.

Read the complete article here. [A subscription may be required.]


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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