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CFPB’s Proposed Debt Collection Rule Needs Clarification

The CFPB should be clear that any update to the current debt collection rules will not stand in the way of states enacting and enforcing more stringent rules that protect consumers, CSBS and the North American Collection Agency Regulatory Association (NACARA) said in a joint comment letter today.

The CFPB asked for comments as it considers amending the Fair Debt Collection Practices Act, which governs debt collectors as mandated under the Dodd-Frank Act. In many states, state regulators license and supervise debt collectors. 

In the letter, CSBS and NACARA asked the CFPB to:

  • Clarify that the rule would allow states to have more stringent rules around disclosures;  
  • Increase consumer awareness of debt notification and dispute rights under state specific laws by ensuring state law disclosures are prominently referenced and displayed on all types of debt validation notices;
  • Clarify the ways a consumer can opt out of an electronic communication; and
  • Limit call attempts by a debt collector on a per consumer rather than a per debt basis and expand that proposal to all methods of communication by a debt collector.


To read the CSBS and NACARA letter, click here.

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