Removing Barriers Blog

CFPB to Host Debt Collection Field Hearing in Sacramento California
Posted July 18, 2016 by CUNA Advocacy

The Consumer Financial Protection Bureau (CFPB) will host a field hearing in Sacramento, Calif., about debt collection on Thursday, July 28 at 11 a.m. PDT.  The hearing will more than likely be focusing on the release of proposals for a Small Business Review Panel in accordance with the Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA) for debt collection.  

We have been told by the CFPB that these proposals will not include any changes that impact first-party creditors, and that there will be a separate SBREFA process for first-party creditors. 

We appreciate that the CFPB appears to recognize our concerns about the very significant differences between credit unions and for-profit third-party debt collectors, which was made apparent by the non-inclusion of credit unions in the debt collection SBREFA process at this point. We hope this means that the CFPB recognizes that credit unions should be exempt from their Fair Debt Collection Practices Act rulemaking, since Congress purposefully did not include first party creditors in this statute. 

The hearing will feature remarks from CFPB Director Richard Cordray, as well as testimony from consumer groups, industry representatives, and members of the public. 

For more information about this hearing, visit the CFPB website.