CFPB Turns Toward Debt Collectors and Away from Consumers
WASHINGTON, DC - On Friday, February 21, the Consumer Financial Protection Bureau (CFPB) released a Supplemental Notice of Propose Rulemaking (Supplemental NPRM), that would provide a path for debt collectors to pursue time-barred debt. The rule supplements a proposed debt collection rule that the CFPB released in May 2019. As proposed, debt collectors could collect debt that is beyond statutes of limitations – as long as consumers receive certain disclosures at the time of initial contact and for any required validation notice. The consumer disclosure would apply only if the debt collector