CFPB Outlines New Proposals For Third Party Consumer Debt Collection

September 01, 2016

The Consumer Financial Protection Bureau (CFPB) in the U.S. published an outline of proposals on July 28, 2016 to govern consumer debt collection by debt collectors including third-party collection agencies, debt buyers, collection law firms and loan servicers (including residential mortgage servicers) in response to consumer complaints received under the Fair Debt Collection Practices Act. Debt collectors have also requested additional guidance on collection practices from the CFPB, which previously had primarily created industry standards through its enforcement operations rather than through formal rulemaking. The CFPB was given additional authority to regulate debt collection practices through the Dodd-Frank Act. These proposals would not apply to the collection of commercial debts.

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