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ICYMI: NAFCU Network insight post flags FDCPA litigation for CUs
In a recent post on NAFCU’s Compliance, Risk, & BSA Network, NAFCU Senior Regulatory Affairs Counsel Kaley Schafer reviews recent litigation related to the Fair Debt Collection Practices Act (FDCPA) that present significant impacts for financial institutions located in the 11th Circuit Court of Appeals jurisdiction and could have broader impacts on interpretation of the FDCPA – especially for credit unions where a state law requires creditors to follow the FDCPA.
In the case, the court held that an electronic transmission of information from a debt collector to a third-party vendor – which included the consumer’s name, outstanding balance, to whom the debt was owed, and the circumstances surrounding the debt – was in violation of the FDCPA, as the FDCPA prohibits debt collectors from communicating personal information to third parties.
NAFCU will continue to keep members updated if the case proceeds on its merits as well as any additional litigation related to this issue. Credit unions can provide feedback and insights on this topic by emailing Schafer at kschafer@nafcu.org and can stay up-to-date on this issue via NAFCU Today.
NAFCU’s Compliance, Risk, & BSA Network is a complimentary, member-only online community exclusively for credit union compliance professionals.