December 18, 2017

Following NAFCU letter, CFPB withdraws debt collection request

The CFPB has withdrawn its request for feedback related to first- and third-party debt collection rulemakings. NAFCU last week sent a letter to the bureau urging it to reevaluate its rulemaking efforts as it had failed to recognize the unique structure of credit unions.

In November, the CFPB requested feedback on its plan to conduct a web survey on debt collection disclosures that will inform future rulemakings on first- and third-party debt collection. The survey would explore consumers' understanding and decision-making process when exposed to debt collection disclosure forms.

The bureau withdrew its request shortly after NAFCU submitted its comment letter Thursday. The withdrawal notice states that "Bureau leadership would like to reconsider the information collection in connection with its review of the ongoing related rulemaking."

In the association's letter, NAFCU Regulatory Affairs Counsel Ann Kossachev said that first- and third-party debt collection rules would have a negative impact on the credit union industry and will make it more difficult for credit unions to offer affordable, high quality products to their members.

NAFCU will continue to monitor the CFPB's actions on debt collection issues and will advocate for credit unions' exemption from any future rulemakings.