Washington, D.C. – Stephen Hall, Legal Director and Securities Specialist for Better Markets, issued the following statement on the filing of a comment letter to the CFPB today on the need for additional consumer protections against abusive debt collectors:
“In 2020, the CFPB, under the leadership of former Director Kathleen Kraninger, finalized two rules on debt collection. In keeping with the anti-consumer, predator-friendly stance of the CFPB under her leadership, these debt collection rules favor abusive debt collectors at the expense of the consumers the CFPB is supposed to protect. The rules, if they go into effect as scheduled in November 2021, will make it easier for debt collectors to harass vulnerable consumers with repeated phone calls and will facilitate the collection of ‘time-barred’ debt, i.e., debt that is so old that debt collectors cannot even sue over it.
“The CFPB is now under new leadership and has proposed delaying the effective date of the debt collection rules for 60 days to reassess them. In a comment letter filed today, Better Markets supports the delay to give the CFPB the opportunity to revisit and revise the debt collection rules so they protect consumers rather than the abusive debt collectors who would exploit them. In comments that echo concerns Better Markets previously raised, we urge the CFPB to draft debt collection rules that protect consumers from repeated harassment and from inherently deceptive conduct, including the collection of time-barred debt. In short, the CFPB must return to the task of protecting consumers rather than predators.”
Contact: Pamela Russell at 202-618-6433 or prussell@bettermarkets.com
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Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies – including many in finance – to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.com.
