Whats Next for Debt Collection Regulation and the CFPB? Thursday, - - PowerPoint PPT Presentation

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Whats Next for Debt Collection Regulation and the CFPB? Thursday, - - PowerPoint PPT Presentation

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Whats Next for Debt Collection Regulation and the CFPB? Thursday, December 8, 2016 www.cfed.org @CFED /CFEDNews cfed.org/blog/inclusiveeconomy Presenters Anju Chopra Senior Policy Manager, Government Affairs CFED April Kuehnhoff Staff

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www.cfed.org

/CFEDNews @CFED cfed.org/blog/inclusiveeconomy

What’s Next for Debt Collection Regulation and the CFPB?

Thursday, December 8, 2016

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www.cfed.org

/CFEDNews @CFED cfed.org/blog/inclusiveeconomy

Presenters

Anju Chopra Senior Policy Manager, Government Affairs CFED April Kuehnhoff Staff Attorney National Consumer Law Center (NCLC)

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www.cfed.org

/CFEDNews @CFED cfed.org/blog/inclusiveeconomy

Housekeeping

  • All webinar attendees are

muted to ensure sound quality.

  • Ask a question any time by

typing the question into the text box of the control panel OR use the hands-up function.

  • If you experience any technical

issues, email gotomeeting@cfed.org.

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/CFEDNews @CFED cfed.org/blog/inclusiveeconomy

Why Debt Collection is Important Unpacking the CFPB Proposal for Regulating Debt Collection Implications of the New Administration – The Future of the CFPB Present and Future Engagement (Advocacy) Consumer Rights

Webinar Content

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/CFEDNews @CFED cfed.org/blog/inclusiveeconomy

Payday Lending Advocacy

Thank You !

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/CFEDNews @CFED cfed.org/blog/inclusiveeconomy

77 million Americans have debt in collections One out of Every Three (35% of adults with credit files) The Poorest (lowest quarter) Owe More than they make

Why is this Issue Important?

Image Courtesy of Lifehacker

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/CFEDNews @CFED cfed.org/blog/inclusiveeconomy

The number one complaint at The Consumer Financial Protection Bureau (CFPB) More than credit cards, student loans, and payday lending, among others More than 280,000 complaints received at FTC in 2014 Nearly double the 2010 number

High Complaint Levels

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These are the top complaints received in 2015:

  • 1. Debt Not Owed – Wrong person, debt already paid, etc.
  • 2. How Collectors Contact Debtors (Communications) – Calling too often,

calling at inconvenient places or times, threatening or abusive language, etc.

  • 3. Disputes about Debt – Did not receive required written notice, did not

receive adequate documentation, etc.

Top Complaints Received by the CFPB

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/CFEDNews @CFED cfed.org/blog/inclusiveeconomy

Authority for Debt Collection Regulations

Fair Debt Collection Practices Act (FDCPA) – 1977

Limits debt collection practices

Dodd-Frank Wall Street Reform and Consumer Protection Act - 2010

Created Consumer Financial Protection Bureau (CFPB) CFPB Rulemaking Authority:

  • FDCPA
  • Unfair, Deceptive, and Abusive Acts or Practices

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Why Do We Need Regulations?

Clarify Certain Provisions in FDCPA Modernize FDCPA

Rise of Debt Buying Industry New Communication Technologies

Regulate First-Party Debt Collectors

Banks, Payday Lenders, Hospitals, etc. Collecting in their Own Names

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/CFEDNews @CFED cfed.org/blog/inclusiveeconomy

Rulemaking So Far

Advanced Notice of Proposed Rulemaking

  • Nov. 2013

Small Business Review Panel Outline Debt Collectors July 2016 Small Business Panel Meeting

  • Aug. 2016

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Rulemaking: Next Steps

Small Business Review Panel Outline Creditors Early 2017? Proposed Rule 2017? Final Rule 2018?

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Outline – Debt Collectors

NOT a Proposed Rule!

Content may still change

Three Major Sections

1. Information Integrity 2. Consumer Understanding Initiatives 3. Collector Communication Practices

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Information Integrity

Pre-Collection

Fundamental Information, Warning Signs, Representations of Accuracy

During Collection

Ongoing Review for Warning Signs

Post-Dispute

Cease Collection and Review Key Documents

Pre-Litigation Review Key Documents Before Filing Suit

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Information Integrity (Continued)

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Transfer of Information to Subsequent Collectors

Unresolved Dispute, Servicemember Status, Deceased, etc.

Validation Notice

Require Additional Content in Notice and Statement of Rights Provide Model Translation Requirements

Credit Reporting

Prohibit “Parking” Debt

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/CFEDNews @CFED cfed.org/blog/inclusiveeconomy

Consumer Understanding Initiatives

Litigation Disclosure

Collector Intends to Sue, Consequences of Failing to Defend, and CFPB Resources

Time-Barred Debt

Prohibit Suits on Time-Barred Debt Waiver of Revival Require Disclosures

  • Debt is Time-Barred
  • Whether Time-Barred Debt Can Appear on Credit Reporting

Require Written Acknowledgment by Consumer If Debt Time-Barred and Credit Reporting Prohibited

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Collector Communication Practices

Limited Content Messages

Exempt Certain Voicemail, Email, Text, and 3rd Party Contacts from FDCPA

Limit Consumer Contacts

Maximum of 6 Attempted Contacts Per Consumer Per Account Per Week

Limit 3rd Party Location Contacts

Maximum of 6 Attempted Contacts Per 3rd Party Per Account Per Week

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Future Unclear for Debt Collection Rule

Trump Could Halt All Rulemaking

Leave Rulemaking in Limbo

Attacks on CFPB

Eliminate Agency Defund Eliminate Rulemaking Authority Change Leadership Structure

Weaken Protections for Consumers with Debts in Collection

Through Rulemaking or FDCPA Amendments

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/CFEDNews @CFED cfed.org/blog/inclusiveeconomy

How to Ensure the CFPB is not Dismantled and Releases Strong Debt Collection Rules

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Share Stories Are citizens of your community willing to share their story? We’d love to hear from them Common Challenges What common debt collection problems do people in your community face Let us know! Contact: achopra@cfed.org

What Can You Do Now?

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/CFEDNews @CFED cfed.org/blog/inclusiveeconomy

Submit a Complaint to the CFPB Online - http://www.consumerfinance.gov/data- research/consumer-complaints/ By Phone - (855) 411-CFPB (2372) Contact Your State Attorney General www.naag.org/current-attorneys-general.ph

Problems with Debt Collectors? Know Your Rights

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/CFEDNews @CFED cfed.org/blog/inclusiveeconomy

Support the CFPB Multi-Level Advocacy #ConsumersCantWait Campaign Rebranding & Expansion Federal Advocacy The Financial CHOICE Act The Congressional Review Act Prepare for Release of Proposed Rules CFED will be commenting

Where We Need Your Help - Future Advocacy

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/CFEDNews @CFED cfed.org/blog/inclusiveeconomy

Federal Law Protects Consumers from Unfair and Deceptive Collection Practices Examples Time and Place Restrictions (E.g. Before 8 am or after 9 pm) Written Notice of the Debt is Required (within five days of initial contact) Collector Must Stop Contacting a Consumer if Debt is Disputed in Writing Within 30 Days of Notice

Know Your Rights

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/CFEDNews @CFED cfed.org/blog/inclusiveeconomy

CFPB ‐ http://bit.ly/cfpbdebtcollection FTC ‐ http://bit.ly/ftcdebtcollection Consumer Information to Help Deal with Debt (FTC) ‐ http://bit.ly/ftcdealwithdebt

Know Your Rights - Resources

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/CFEDNews @CFED cfed.org/blog/inclusiveeconomy

CFED – www.cfed.org NCLC - www.nclc.org/issues/debt-collection.html Center for Responsible Lending (CRL) - www.responsiblelending.org/issues/debt-collection-settlement Fix Debt Collection - www.fixdebtcollection.com/

Additional Resources

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Questions?