UPCOMING CONFERENCES & TRADE SHOWS
June 8-10, Boca Raton, FL2015 Florida Bankers Association Annual MeetingAttending – Curtis Herbert, Natalie Mencia & Tina CrivelloJuly 19-22, Lake Tahoe, NVALFN Annual Leadership ConferenceAttending – Jim Bonner & Kevin Frazier
5 Key Points From CFPB’s Annual Report On FDCPA
The CFPB had a very busy 2014 administering the Fair Debt Collection Practices Act (FDCPA). In the CFPB’s Annual Report, the Bureau gives us a glimpse into it’s agenda. Here are the five key points to draw your attention to.
1. Ensure You Have Enough “Media”. It is no secret that the CFPB wants creditors and debt collectors to produce documentation (also known as Media) to support claims against consumers. In November 2013, the CFPB released the Advanced Notice of Proposed Rulemaking (ANPR) where the Bureau considered using its “rulemaking authority to develop requirements related to the transfer of specified information or documents as part of the … the placement of a debt with a third-party collector” (Pg. 26). While the Bureau has yet to propose any rules, it is certainly exercising its supervisory and enforcement abilities under the FDCPA to achieve the same effect.Section 1692e of the FDCPA prohibits entities from making false or misleading representations in connection with the collection of a debt. According to the CFPB, filing a legal action and dismissing upon receipt of an Answer due to failure to obtain documentation to support claims is false and misleading, therefore it violates section 1692e. In the Annual Report, the Bureau stated that it uncovered a number of these violations during its examinations (Pg. 19). The Bureau’s interpretation will impact your company if you rely on limited to no media. The Bureau can enforce the FDCPA through enforcement action if your company is subject to the larger participant rule. Your company may also be vulnerable to civil action as consumer-friendly courts begin to adopt this CFPB interpretation.
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