On May 19, 2021, Better Markets filed a comment letter on the CFPB’s proposed delay of the effective dates for its 2020 debt collection rules. We support this delay inasmuch as it is used as an opportunity to review these flawed rulemakings, to prevent their flawed provisions from going into effect, and to substantially revise them.
The Fair Debt Collection Practices Act protects consumers from invasive, abusive, and predatory tactics employed by debt collectors. Before the Act’s passage, debt collectors harassed consumers to collect debts–calling friends and family in order to shame consumers into paying, and even calling into debtor’s workplaces and attempt to get them fired. They also threatened litigation and aggressively pursued collection efforts even when debts were so stale that lawsuits were time-barred under the law.
The Dodd-Frank Act made the CFPB responsible for enforcing the Act’s protections against these tactics. Unfortunately, in its 2020 rulemakings the CFPB chose to prioritize the convenience and profits of debt collection agencies over the rights of the consumers it is statutorily obligated to protect. Its rules failed to protect consumers from repeated and frequent contacts by debt collectors and also failed to put a stop to the collection of time-barred debt. We hope that with new leadership in place, the Bureau will return to its core mission of protecting consumers and revise these rules.
Read our full comment letter here or by clicking the button below.