Updates from the CFPB’s markets division about Reg F and discussions on the accounts receivable management industry’s advocacy role on Capitol Hill dominated the first half of ACA’s interactive virtual conference. Editor’s note: This article is for members only.
4/22/2021 17:00
In a discussion with ACA International members Thursday, Consumer Financial Protection Bureau Principal Assistant Director in Markets John McNamara said that at this time, the bureau does not have plans to make substantive changes to the Regulation F (Reg F) debt collection rule or issue further delays beyond the new Jan. 29, 2022, proposed effective date.
McNamara spoke with ACA members Kevin Baich, vice president of Day Knight Associates and ACA president-elect, and Jonathan Pompan, partner and co-chair of the Consumer Financial Services Practice Group and CFPB Task Force at Venable LLP, during the 2021 Virtual Washington Insights Fly-In.
McNamara said under the leadership of Acting Director David Uejio, the accounts receivable management (ARM) industry can expect a bureau leadership that is more focused on the consumer experience. He also stressed that the CFPB’s markets division, where he works, is in regular contact with industry stakeholders to be a touchpoint between the regulator and the entities it oversees.
McNamara recommends members connect with the bureau’s Office of Regulations and sign up for updates on compliance resources. ACA also has these resources and more available for members on the CFPB Reg F Resource Center.
McNamara noted the CFPB recently released an updated Small Entity Compliance Guide related to Reg F.
The CFPB focused on prioritized assessments of supervised entities in the last year due to the COVID-19 pandemic and McNamara, when asked for takeaways from Pompan, explained the markets division saw industry groups do well and that collectors acted responsibly.
As the compliance date for Reg F approaches, if industry stakeholders have concerns about any changes to the final rule, it’s important to share them with the bureau, according to McNamara.
The CFPB’s 10th anniversary is also approaching in July. McNamara said looking back on the last 10 years, it’s important for industry stakeholders to know about the compliance management system guidance the bureau developed and to understand enforcement actions are very specific to the parties involved and shouldn’t be seen as a recommendation for all companies.
Legislative Updates – Make Your Voice Heard
In legislative discussions during the first part of the Washington Insights online conference, ACA CEO Mark Neeb stressed the constant presence the association has on Capitol Hill, even during the pandemic.
“It’s clear that we as an ARM industry make our voice heard,” Neeb said. “We hope that after today you not only have a better understanding of advocacy, but you will take action. You are the strongest advocates we could ask for. It is vital that we share with legislators the impact their decisions have on the industry.”
Focusing on legislative advocacy, ACA hosted a session with U.S. Sen. Kevin Cramer, R-N.D., Leah Dempsey, ACA’s vice president and senior counsel of federal advocacy, and Travis Johnson, managing principal at 1607 Strategies.
Cramer, who serves on the Senate Committee on Banking, Housing and Urban Affairs, is a proponent of simplifying Paycheck Protection Program loans for small businesses. He also opposed Operation Choke Point efforts and supported protections for preserving banking relationships through legislation.
Cramer thanked ACA for its advocacy on Capitol Hill and stressed how it helps members of Congress do their jobs.
Cramer and 33 senators are cosponsoring a bill to prevent discrimination by banks and financial service providers against customers in certain industries, including debt collection.
Cramer, through the Fair Access to Banking Act, seeks to continue a rule from the Office of the Comptroller of the Currency (OCC) that codifies more than a decade of OCC guidance stating that banks should conduct a risk assessment of individual customers, rather than make broad-based decisions affecting whole categories or classes of customers, when provisioning access to services, capital and credit, ACA previously reported.
He noted the importance of every legal industry having fair access to capital during his presentation Thursday.
In discussions with Cramer, Dempsey asked if he expects the Senate Banking Committee to consider any of the bills in the Comprehensive Debt Collection Improvement Act (H.R. 2547) approved by the House Financial Services Committee April 21.
He said the committee may have hearings on the legislation, and witnesses at those hearings are important considering the 50/50 power sharing agreement between Democrats and Republicans in Congress.
Overall, Cramer stressed the importance of bipartisanship and communication in crafting legislation.
During the remainder of the conference, ACA members discussed women in advocacy and in Congress with the Women in Collections Resource Council; tips for connecting with legislators locally and in Washington, D.C., the new Democrat majority in Congress; developments in state regulation in response to the COVID-19 pandemic; and working with new leadership at the CFPB and Federal Communications Commission.
“Member engagement is increasingly important, and nothing can replace your voice in Washington, D.C., and at the local level,” Neeb said.
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Thank you to Washington Insights Virtual Fly-In sponsors VoApps, Venable LLP and Solutions by Text.