NACA, Groups Have Concerns with CFPB's Debt Collection Outline

Publish Date: 
September 15, 2016
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NACA and other consumer protection, civil rights, and legal services groups sent a letter to Richard Cordray, director of the Consumer Financial Protection Bureau, to express significant concerns with the outline of proposed regulations on third-party debt collection issued by the Consumer Financial Protection Bureau on July 28, 2016. The proposal represents a missed opportunity to fundamentally improve protections for consumers victimized by predatory debt collection practices.

Groups are concerned that the proposal does not meaningfully address: substantiation of debt; inadequate investigation of disputed debt; lawsuits and default judgments based on faulty documentation; call harassment; time-barred debt; confusing validations notices; protections for medical debt, student loan debt, and decedent debt; collectors’ promises relating to credit reporting; and language access concerns for consumers with limited English proficiency who do not speak Spanish.