CFPB Debt Collection Rule Sets Up Long Fight for Attorneys

Debt collection attorneys won federal regulators’ assent of their call to refrain from a new provision in a rule outlining lawyers’ responsibilities in collection litigation. But the gain could prove to be a long-term pain for attorneys.

The Consumer Financial Protection Bureau’s final debt collection rule, released Oct. 30, didn’t include a “meaningful attorney involvement” safe harbor, which lists legal steps attorneys must meaningfully undertake before they can legally pursue debtors. The provision, which was included in the original proposal, would have shielded attorneys from CFPB enforcement actions and private litigation if they followed procedures for pleadings, written motions, ...