A U.S. regulator unveiled proposed rules for debt collectors that would restrict how often they can call borrowers, while making clear that firms can send unlimited text messages and emails as long as consumers don’t opt out.
A U.S. regulator unveiled proposed rules for debt collectors on Tuesday that would restrict how often they can call borrowers, while making clear that firms can send unlimited text messages and emails as long as consumers don’t opt out of such communications.
The Consumer Financial Protection Bureau regulations — the result of a process started under former Director Richard Cordray — would mark some of the first major rule changes for the industry in four decades if they are adopted.The proposal is likely to trigger fresh claims from Democratic lawmakers that the CFPB is being gutted under President Trump, because the rules would fall far short of what consumer advocates have called for.
Rules would almost exclusively cover third-party debt collectors and generally wouldn’t apply to in-house creditors, according to a senior bureau official. The proposed rules also clarify what debt collectors have to disclose to consumers in official notices. “The bureau is taking the next step in the rulemaking process to ensure we have clear rules of the road where consumers know their rights and debt collectors know their limitations,” Kraninger said in a statement. “As the CFPB moves to modernize the legal regime for debt collection, we are keenly interested in hearing all views so that we can develop a final rule that takes into account the feedback received.
Debt collection is one of the areas in which the CFPB receives the most complaints, with about 81,500 consumer grievances filed last year, according to a bureau report to Congress.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Trump administration wants to allow debt collectors to call 7 times a week and text, email as much as they wantThe debt collection industry has been clamoring for an update to the Fair Debt Collection Practices Act for years, but the CFPB proposal announced Tuesday is likely to meet resistance from consumer advocates.
Read more »
Feds propose new rules on debt collectors' repeat callsThe Consumer Financial Protection Bureau is proposing new rules to help curb debt collectors' repeated calls.
Read more »
Billionaire unveils fund to defend people from medical-debt collectorsIdaho's wealthiest man just launched a new fund to defend people from 'overly aggressive medical debt collectors.'
Read more »
Trump administration wants to allow debt collectors to call 7 times a week and text, email as much as they wantThe debt collection industry has been clamoring for an update to the Fair Debt Collection Practices Act for years, but the CFPB proposal announced Tuesday is likely to meet resistance from consumer advocates.
Read more »
New Rule to Shift Debt Collection Activities to Digital DevicesConsumers with debts in collection could soon see email and text messages replace phone calls and letters as the main channels of communication from debt collectors.
Read more »
U.S. sending asylum seekers to Mexico while awaiting court ruling, in some cases ignoring own protocolsHundreds of migrants have been sent back to Mexico as part of experimental program that is subject to court action.
Read more »