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On April 19, 2021, the CFPB issued an interim final rule (“rule”) aimed at preventing illegal evictions.  This measure is intended to support an eviction moratorium issued by the Centers for Disease Control and Prevention (“CDC”), which prevents landlords from evicting tenants for failing to pay rent when the tenant is unable to afford full payments and would likely be driven into homelessness or a shared living setting by the eviction.  The rule applies to debt collectors—as defined in the Fair Debt Collection Practices Act (“FDCPA”)—who are collecting debts for landlords.  Under the rule’s terms, such collectors must disclose the existence of the CDC moratorium and may not misrepresent tenants’ eligibility for protection under the moratorium.
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Continue Reading CFPB Issues Rule Targeted at Preventing Illegal Evictions

On March 23, 2021, the CFPB submitted its report to Congress covering its administration of the Fair Debt Collection Practices Act (“FDCPA”) during 2020.  Because the CFPB shares responsibility for enforcing the FDCPA with the FTC, the report also describes the FTC’s activities relating to debt collection.  Notable developments include the effect of the COVID-19 pandemic on the debt collection industry and a description of the CFPB’s recently issued final debt collection rules.
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Continue Reading CFPB Releases FDCPA Report to Congress Covering Debt Collection Activities in the Previous Year

On June 7, 2019, 26 Democratic senators sent a letter to Consumer Financial Protection Bureau (the “Bureau”) Director Kathleen Kraninger criticizing the Bureau’s proposed rule to modify Regulation F under the Fair Debt Collection Practices Act.  As we have previously discussed, the Bureau released its long-anticipated proposed rule on May 7, 2019.  Director Kraninger described…

On May 7, 2019, the Consumer Financial Protection Bureau (“CFPB” or the “Bureau”) released its long-anticipated proposed rule on debt collection. The proposed rule would amend Regulation F, which implements the Fair Debt Collection Practices Act (“FDCPA”), and would govern the activities of debt collectors, as defined in the FDCPA. Certain provisions also rely on the Bureau’s authority under sections 1031 and 1036 of the Dodd-Frank Act to regulate unfair, deceptive, or abusive acts or practices. CFPB Director Kathleen Kraninger described the Bureau’s action as an effort to “modernize the legal regime for debt collection” and “ensure we have clear rules of the road where consumers know their rights and debt collectors know their limitations.”
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Continue Reading CFPB Proposes Debt Collection Rule under FDCPA

This week, the House Financial Services Committee (the “Committee”) approved by a vote of 35-25 a bill introduced last month by Rep. Alex Mooney (R-WV) that would exclude from the definition of “debt collector” under the Fair Debt Collection Practices Act (“FDCPA”) law firms or licensed attorneys engaged in litigation activities to collect a debt,…

Yesterday, the Consumer Financial Protection Bureau (“CFPB”) and Federal Trade Commission (“FTC”) issued a joint annual report to Congress on their activities in 2017 to combat illegal debt collection practices under the Fair Debt Collection Practices Act (“FDCPA”), for which the agencies share responsibilities.
The report suggests that, even amidst other changes at the CFPB, debt collection activities remain an area of focus, particularly on the enforcement side. The report also highlights coordination between the FTC and CFPB at least on this issue. It remains to be seen how this coordination plays out practically in future investigations and how the CFPB handles similar overlapping authorities with other regulators.

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Continue Reading Regulators Issue Report on Activities to Combat Illegal Debt Collection Practices

On December 27, 2017, the CFPB released its biennial report on the state of the credit card market. The CFPB’s report found the market to be stable and growing steadily. In particular, the Bureau found that the cost of credit card credit to consumers remains stable overall, in terms of both total costs and the structure of those costs. Some trends noted in the report include the growing use of secured credit cards – which require a cash security deposit and are often used by consumers to build credit history – and the significant proportion of consumers who are interacting with their credit card accounts online and through mobile applications. The report does not make specific recommendations or signal any intent by the CFPB to pursue major regulatory initiatives with regard to credit cards.
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Continue Reading CFPB Releases Credit Card Report

On April 17, 2017, the Consumer Financial Protection Bureau filed suit in the Northern District of Ohio against Weltman, Weinberg & Reis Co., L.P.A. (“Weltman”), a debt collection law firm.  The CFPB’s complaint alleges that the firm misrepresented the level of attorney involvement in its collection efforts in violation of the Fair Debt Collection Practices…

On October 11, 2016, the Consumer Financial Protection Bureau (CFPB) announced that it had taken action against Navy Federal Credit Union for allegedly making false threats about debt collection to its members, which include active-duty military, retired servicemembers, and their families, and for allegedly restricting account access when members had a delinquent loan.  Under the terms of the consent order, Navy Federal Credit Union will pay approximately $23 million in redress to consumers, pay a civil money penalty of $5.5 million, revise its debt collection practices, and take steps to ensure delinquent members can access their accounts.…
Continue Reading CFPB Takes Action Against Navy Federal Credit Union for Debt Collection Practices