Removing Barriers Blog

CUNA Meets with the CFPB to Discuss Debt Collection
Posted May 10, 2016 by CUNA Advocacy

CUNA Chief Compliance Officer Jared Ihrig and Senior Director of Advocacy and Counsel Leah Dempsey met with staff at the CFPB today to reiterate the credit union perspective on the forthcoming Fair Debt Collection Practices Act (FDCPA) rulemaking.

During the meeting, we reiterated our concerns with the potential inclusion of first party creditors in this rule. We also discussed the problems that any additional regulatory burdens could cause for credit unions, and encouraged the CFPB to include small credit unions in an upcoming SBREFA panel, which will look at the impact any rule would have on small businesses.

However, even if this rule doesn’t directly affect credit unions, the CFPB may still proceed with UDAAP enforcement actions as it sees fit. In a hearing earlier this spring Director Cordray stated, “The notion that because we may issue the [debt collection] rule several years down the road, or maybe next year, we shouldn’t be engaging in UDAAP, I don’t think is a right approach.” 

We are closely following both debt collection enforcement actions and rulemaking in this area.