The Consumer Financial Protection Bureau today issued an outline of proposals under consideration for updating the Fair Debt Collection Practices Act. While the proposals only apply to debt collected by third parties, the bureau has indicated its intention to address first-party debt collection “on a separate track.”
Among other things, the proposals call for caps on debt collection attempts and require collectors have sufficient information before attempting to collect a debt. Debt collection companies would also be required to clearly disclose debt details to the consumer and provide an easier dispute process. The proposals will be reviewed by a Small Business Review Panel, which will gather feedback from small industry players.
Along with the proposal today, the bureau released a study of third party debt collection operations. ABA is currently drafting a staff analysis of the proposals and will continue to engage with the CFPB as the rulemaking moves forward.
