Banking Law News

Banks Fear CFPB Debt Collection Rules Could Extend to Them

Sept. 20, 2019, 7:23 PM

The Consumer Financial Protection Bureau intends for its proposed debt collection rules to apply only to third-party collectors, but banks, credit unions, payday lenders fear they may be covered by the rule because of the way it is drafted.

The CFPB has proposed first-of-their kind rules for the debt collection market using its authority under the Fair Debt Collection Practices Act. That 1977 law applies only to third-party collection firms, which either contract with a first party creditor or buy the debt and then move to collect it.

But the CFPB also cited its powers to police unfair, deceptive or...

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