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Consumer advocates say CFPB’s new debt collection proposal is inadequate

Tuesday, July 23, 2019
Poonkulali Thangavelu
Melissa Stegman

Even as the Consumer Financial Protection Bureau (CFPB) moves to update the Fair Debt Collection Practices Act of 1977 to better reflect the impact of newer communications technology, some consumer advocates point to the inadequacy of the proposed measures.

The consumer protection agency has invited public comment on the proposed update, which would set up rules on how debt collectors could use newer technologies – including social media, text messages and emails – to interact with debtors, such as those delinquent on credit card debt. It would also require enhanced disclosures from debt collectors about the debt, and collection procedures.