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The proposed rules, which only apply to third-party collectors, would be the most significant changes to the industry since Congress passed the Fair Debt Collections Practices Act nearly 40 years ago.
The proposed amendments to the CFPB’s “Know Before You Owe” rule are intended “to formalize guidance in the rule and provide greater clarity and certainty,” the bureau said.
The move is drawing industry scrutiny because the order targets an individual rather than a company, as well as for its broad interpretation of RESPA.
Although subpoenas, hearings and litigation are familiar terms, the concept of a “civil investigative demand” is not. Considering the CFPB’s increasing use of CID, the concept is worth a closer look.
The bureau’s proposed rule would disrupt community bank lending because of its “extremely complex and prescriptive nature,” said executives from ICBA and CUNA. CFPB Director Richard Cordray defended the move as an attempt to eliminate debt traps.
The troubled appointment of Richard Cordray as Director of the Consumer Financial Protection Bureau four years ago continues to be a thorn in the side of the agency
With Democratic presidential candidate Hillary Clinton poised to choose her November running mate, the past two weeks have seen both the founding force and the current Director of the Consumer Financial Protection Bureau mentioned as possibilities.
BancorpSouth, announced this week that it has entered into a consent order with the Department of Justice and the Consumer Financial Protection Bureau pursuant to alleged violations of the Fair Housing Act and Equal Credit Opportunity Act.
The Consumer Financial Protection Bureau is once again casting its shadow over an industry where its jurisdiction may be questionable.
Some 25 percent of the Consumer Financial Protection Bureau’s African-American, Asian and female employees reported continued discrimination at the bureau, according to the Government Accountability Office.