CFPB issues proposals for debt collection regulation

The CFPB moved one step closer to issuing a debt collection rule last week when it unveiled its 117 page outline of proposals in conjunction with the field hearing in Sacramento, California. Director Cordray’s opening speech echoed the prepared remarks issued before the field hearing which emphasize the high rate of complaints that the debt collection industry draws and the need to heighten industry standards by overhauling existing regulation.

Proposals for new Regs Z and M commentary

On July 22, the CFPB and Federal Reserve Board issued proposed rules which will amend the official interpretations and commentary to the regulations that implement the Truth in Lending Act (Regulation Z) and the Consumer Leasing Act (Regulation M). These amendments will memorialize the calculation method used by the agencies each year to adjust the thresholds for exempt consumer credit transactions and consumer leases.

Proposed payday rule comment deadline extended

Proposed payday rule comment deadline extendedOn July 22, the CFPB published its proposed rule for Payday, Vehicle Title, and Certain High-Cost Installment Loans. The Bureau also concurrently issued a Request for Information (RFI) which solicits information and evidence regarding to help assess whether there are other categories of loans for which lenders do not determine the consumer’s ability to repay that may pose risks to consumers.

Further, the Bureau requests responses as to whether there are other lender practices with regard to covered loans that may warrant further action by the CFPB in addition to its proposed payday rule.