CFPB outlines debt collection proposals; NAFCU analyzing

CFPB on Thursday released an outline of proposals under consideration that would place restrictions on how debt collectors communicate with debtors and would simplify the process for those debtors who want to dispute their debt.

“While CFPB’s outline is targeted toward third-party debt collectors, NAFCU is analyzing the provisions under consideration to assess any direct or indirect impact on credit unions,” said NAFCU Director of Regulatory Affairs Alexander Monterrubio. “Credit unions are good actors that engage in responsible, fair debt collection practices and work to make sure their members’ financial needs and goals are met.”

A survey by NAFCU’s research team this June on credit union debt collection practices found that 80 percent of respondents had waived late fees, interest or fines for delinquent accounts due to member hardship during the last year.

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