Removing Barriers Blog

CUNA & Leagues Attend CFPB Debt Collection Town Hall
Posted May 08, 2019 by CUNA Advocacy

CUNA and state credit union leagues attended a CFPB Town Hall in Philadelphia, Pennsylvania to discuss the CFPB’s recently-issued proposal on debt collection practices under the Fair Dept Collection Practices Act (FDCPA).  The panel was moderated by David Silberman, CFPB Associate Director for Research, Markets, and Regulation, and included representatives from debt collection associations, consumer advocates, and public interest attorneys.

In her remarks prior to the panel, Director Kathy Kraninger said the Bureau’s rule is intended to provide “clear rules of the road where consumers know their rights and debt collectors know their limitations.”   The Director noted the challenges collectors face when dealing with a statute (FDCPA) that is more than 40 years old.  The proposed rule is intended to create standards for the FDCPA’s application to modern technology and provide clarity in areas where clarity was lacking. 

The panel of experts discussed several aspects of the proposal, including the provisions related to telephone call frequency limitations, opt-out requirements, limited-content messages, and the treatment of time-barred debt. 

The CFPB’s proposed rule would only apply to FDCPA-covered debt collectors, which means most impacts on credit unions would be indirect.  In response to the release, CUNA expressed appreciation for the rule’s focus on the practices of underregulated third party debt collectors.