The Consumer Financial Protection Bureau has released its final rule for the Fair Debt Collection Practices Act. The release of the rule promises to bring substantial changes in consumer debt collection practices.
Posts published by “Donald Maurice”
Donald Maurice provides counsel to the financial services industry, successfully litigating matters in the state and federal courts in individual and class actions. He has successfully argued before the Third, Fourth and Eighth Circuit U.S. Courts of Appeals, and has represented the financial services industry before several courts including as counsel for amicus curiae before the United States Supreme Court. He counsels clients in regulatory actions before the CFPB, and other federal and state regulators and in the development and testing of debt collection compliance systems. Don is peer-rated AV by Martindale-Hubbell, the worldwide guide to lawyers. In addition to being a frequent speaker and author on consumer financial services law, he serves as outside counsel to RMA International, on the governing Board of Regents of the American College of Consumer Financial Services Lawyers and on the Governing Committee of the Conference on Consumer Finance Law. From 2014 to 2017, he chaired the ABA's Bankruptcy and Debt Collection Subcommittee. For more information, see https://mauricewutscher.com/attorneys/donald-maurice/
The Consumer Financial Protection Bureau released its Advance Notice of Proposed Rulemaking (ANPR) on Oct. 22, seeking comment on 46 questions in nine categories surrounding consumer access to financial information under section 1033 of the 2010 Dodd-Frank Act (12 U.S.C. § 5533).
The FTC will soon propose changes it says are designed to align several existing rules under the federal Fair Credit Reporting Act with the Dodd-Frank Act. The impacted rules cover only “motor vehicle dealers” being persons “predominantly engaged in the sale and servicing of motor vehicles, the leasing and servicing of motor vehicles, or both.”
The U.S. Supreme Court recently decided that a fix was needed to the federal Telephone Consumer Protection Act. But its decision in Barr v. American Assn. of Political Consultants, Inc. provides no TCPA relief for legitimate businesses that use technology to communicate with their customers.
On June 27, the City of New York’s new rules aimed at language access in debt collection become effective. I am often asked whether they apply to creditors as well. It appears that particular provisions of the new rules do cover creditors collecting their own debt.
Yesterday ARM industry trade associations ACA, New York State Collectors Association and the Receivables Management Association International (RMAI), along with the National Creditors Bar Association and the New York State Bar Association submitted a joint letter to the New York City Department of Consumer and Worker Protection (formerly the Department of Consumer Affairs) requesting a 60-day extension to the effective date of its new language preference rules.
The New York City Department of Consumer and Worker Protection has adopted new rules requiring debt collectors to provide consumers with language preference disclosures and an affirmative obligation to request and record the consumer’s language preference.
The federal Consumer Financial Protection Bureau has extended the deadline for public comments on its Supplemental Notice of Proposed Rulemaking on time-barred debt disclosures to Aug. 4. The Bureau stated its reason for the extension as “the impact of the COVID-19 pandemic.”
Effective June 11, purchasers of consumer debt will face tougher requirements when initiating debt collection lawsuits in Washington state.
The Massachusetts attorney general has adopted a regulation deeming it illegal for a debt collector to telephone a Massachusetts resident to request payment of a debt or for a debt collector or a creditor to file a lawsuit to collect a debt.
A number of states have tolled the statutes of limitations on legal actions in response to COVID-19. The Iowa Supreme Court announced a toll on statutes of limitations in a March 17 order regarding court procedures. According to a March 23 operations summary from the Iowa Judicial Branch: “The March 17th order is intended to toll the statute of limitations or similar deadline for commencing an action in district court by 48 days. Tolling means you add that amount of time to the statute of limitations. So, for example, if the statute would otherwise run on April 8, 2020, it…
New York Gov. Andrew Cuomo has proposed a bill to license consumer debt collectors. The proposal comes as part of the governor’s 2021 “budget bill” and was introduced on Jan. 21. A copy is available here. The bill proposes an effective date of Oct. 1, 2020.