On July 28, at a public hearing in Sacramento, California, the Consumer Financial Protection Bureau released an outline of new rules targeting third-party debt-collection operations. The new rules seek to curb “excessive or disruptive” communications by restricting collectors from calling debtors numerous times a day, requiring debt collection companies to have “more and better information” about the debt they collect, including documentation on what is owed, and giving consumers more options to dispute their bills.
The CFPB’s outline focuses on rules pertinent to third-party debt collectors—those who operate on behalf of creditors—and debt buyers. Rules relevant to creditors, first-party collectors, and banks are expected to follow at a later date. The new debt-collection rules would represent the first major regulatory overhaul of the debt collection market since 1977 when the Fair Debt Collection Practices Act (“FDCPA”) was enacted.
Troutman Sanders partners David N. Anthony and John C. Lynch are hosting a complimentary webinar on August 30 to discuss the proposed rules and to provide practical tips as you continue to navigate the changing regulatory landscape.
To listen to the webinar recording, please click here.