July 20, 2019

July 19, 2019

Subscribe to Latest Legal News and Analysis

July 18, 2019

Subscribe to Latest Legal News and Analysis

Consumer advocacy groups make recommendations to Kraninger for debt collection rulemaking

Seventy-four organizations that describe themselves as “consumer, community, civil rights, faith, labor and legal services groups” have sent a letter to CFPB Director Kathy Kraninger to “reiterate our concerns about widespread debt collection abuses that we have raised in the past and the ongoing need for better protection against these abuses.”

In the letter, the groups make recommendations regarding the following:

  • Preventing telephone harassment and increasing consumer privacy.  The groups seek to limit collectors to one live call per week and up to three attempted calls, require collectors to honor a consumer’s verbal request to stop calls, allow text and email communications from collectors only if the consumer has agreed to electronic communications, prohibit collection calls and emails to the consumer’s work phone number and email unless in response to the consumer’s request, and make all collector contacts, including “limited content” calls or messages requesting a call back, subject to the FDCPA.
  • Prohibiting collection of time-barred debt.  The groups seek to entirely prohibit collectors from attempting to collect time-barred debt.  Alternatively, if the Bureau allows collectors to communicate regarding time-barred debts, the groups urge the Bureau to require that such communications be in writing and that a disclosure be provided to inform the consumer he or she cannot be sued on the debt.
  • Improving accuracy and clarity of debt collection notices.  The groups want the CFPB to create a model validation notice and statement of rights.

The issues raised by the groups are likely to be addressed by the Bureau in its anticipated debt collection rulemaking for debt collectors subject to the FDCPA.  In its Fall 2018 rulemaking agenda, the Bureau stated that it “expects to issue [a NPRM] addressing such issues as communication practices and consumer disclosures by spring 2019” and estimated the issuance of a NPRM in March 2019.

Copyright © by Ballard Spahr LLP

TRENDING LEGAL ANALYSIS


About this Author

Barbara S. Mishkin, Ballard Spahr, Philadelphia, Deceptive Practices Lawyer, Fair Debt Collection Practices Act, Gramm Leach Bliley
Of Counsel

Barbara Mishkin focuses on consumer compliance and banking law. The federal laws with which Ms. Mishkin has dealt extensively include the Truth in Lending Act, Equal Credit Opportunity Act, Real Estate Settlement Procedures Act, Fair Credit Reporting Act, Fair Debt Collection Practices Act, and Gramm-Leach-Bliley Act. She also has significant experience with state usury and lender licensing laws, as well as state laws prohibiting unfair and deceptive acts and practices.

American Bar Association, member, Consumer Financial Services Committee;...

215-864-8528