The CFPB’s most troubling proposal?

by. Henry Meier

Much of what the CFPB has done so far is mandated by Congress.  We will start to see just how far reaching its powers are when it comes to promulgating changes to regulations that aren’t mandated by Congress but  harm the Bureau’s sensibilities.  I’m concerned that the Bureau is asking itself how a statute would have been implemented had it only been around.

Which brings us to the CFPB’s request for information about debt collection practices under the Fair Debt Collection Practices Act (FDCPA) in a wide-ranging ANPR published in the Federal Register on November 12 (https://www.federalregister.gov/articles/2013/11/12/2013-26875/debt-collection-regulation-f).  Judging by its questions and the tone of the ANPR, there is a very real risk that a new regulatory regime on debt collection practices will impose mandates similar to those already burdening mortgage servicers and originators.

Most troubling to me is how the Bureau feels that regulations have to be promulgated to curb the alleged excesses of creditors — meaning your employees who have the audacity to call up members behind on their car payments and mortgage loans.  As explained by the Bureau:

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