CFPB issues debt-collection rule with ICBA-advocated change

The Consumer Financial Protection Bureau issued a final rule to implement the Fair Debt Collection Practices Act, which restricts debt collector communications with consumers.

The rule clarifies prohibitions on harassment and abuse, false or misleading representations, and unfair practices. It also applies the law to newer communication technologies and provides information to consumers on identifying debts and responding to collection attempts.

As advocated by ICBA in a comment letter last year, the CFPB structured the final rule to ensure it applies only to third-party debt collectors and doesn't cover community banks and other first-party debt collectors.

Specifically, the bureau used its authority under the FDCPA rather than invoking its authority under section 1031 of the Dodd-Frank Act to regulate unfair, deceptive, or abusive acts or practices.