WASHINGTON, DC (July 28, 2016) — National Association of Federal Credit Unions (NAFCU) Director of Regulatory Affairs Alexander Monterrubio issued the following statement today regarding the Consumer Financial Protection Bureau’s (CFPB) outline of a future proposed rule on debt collection that would place restrictions on how debt collectors communicate with debtors and 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 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.
Under the outlined proposals under consideration, debt collectors would be required to have more information about the debt before they collect. As they are collecting, companies would be required to limit communications and disclose additional details about the debt. Furthermore, when debt collectors are responding to disputes, they would be prohibited from pursuing the debt without evidence sufficient to substantiate the indebtedness.
These outlined proposals would apply to debt collectors as defined by the Fair Debt Collection Practices Act.
The National Association of Federally-Insured Credit Unions is the only national trade association focusing exclusively on federal issues affecting the nation’s federally-insured credit unions. NAFCU membership is direct and provides credit unions with the best in federal advocacy, education and compliance assistance. For more information on NAFCU, go to www.nafcu.org or @NAFCU on Twitter.
