The Consumer Financial Protection Bureau (CFPB) is requesting public comments as it prepares a proposed rule to address issues surrounding coerced debt and its impact on credit reporting. The initiative aims to amend certain provisions within Regulation V, which implements the Fair Credit Reporting Act (FCRA), to better protect consumers.
This request, known as an advance notice of proposed rulemaking (ANPR), focuses on updating the definitions of “identity theft” and “identity theft report” within Regulation V. The amendments aim to include debts stemming from transactions conducted without a consumer’s effective consent. By gathering input from stakeholders, the CFPB intends to develop a rule that mitigates the negative effects of inaccurate credit reporting, particularly for survivors of financial abuse.
Key Focus Areas for Public Comment
The CFPB is soliciting feedback on several critical aspects:
- The prevalence and consequences of coerced debt, particularly its impact on consumers through the credit reporting system.
- Evidence linking coerced debt to a survivor’s credit risk.
- Barriers individuals face in accessing protections under federal or state laws.
- Challenges specific populations encounter, including survivors of domestic violence, older adults, and children in foster care.
- Potential documentation or self-attestation requirements for proving that a debt was coerced.
The ANPR stems from a petition by the National Consumer Law Center and other advocacy groups, highlighting the need for enhanced protections for survivors of financial abuse.
Elder Financial Exploitation Guidance
In a related initiative, the CFPB and other regulatory bodies issued a statement to financial institutions, providing examples of risk management practices to combat elder financial exploitation. These practices are designed to help banks, credit unions, and other institutions identify, prevent, and respond to financial crimes targeting older Americans.
How to Submit Comments
The deadline for submitting comments on the ANPR is March 7, 2025. Stakeholders are encouraged to provide their input electronically to avoid delays. Submissions should reference Docket No. CFPB-2024-0057 and can be made at www.regulations.gov.
By engaging with the public, the CFPB seeks to address the significant harm caused by coerced debt and improve consumer protections in the credit reporting process.
Author: Jennifer Evancic
Jennifer.Evancic@ResourceManagement.com
Jennifer Evancic is a third-party auditor valued by creditors and large organizations for her knowledge in call monitoring within the collections industry. With meticulous attention to detail and a firm grasp of regulatory requirements, she ensures compliance with clients’ criteria and state and federal regulations.
Jennifer audits collections calls, ensuring they meet client-specific criteria and comply with regulations, providing valuable insights and maintaining industry standards.
Beyond her auditing responsibilities, Jennifer takes the lead in organizing and facilitating monthly call calibrations. These sessions serve as a collaborative forum where clients and their vendors come together to discuss call monitoring results and address any findings or areas for improvement. Jennifer’s guidance fosters open communication and ensures alignment between clients and vendors, driving continuous improvement in collections practices.
Jennifer stays up-to-date with compliance and industry best practices by participating regularly in peer meetings, regulatory updates and industry webinars. This keeps her informed about emerging issues and ensures she remains a knowledgeable leader in collections compliance.
Sign Up for the Twice Monthly Newsletter
Just enter your email address at the top orange bar at:
Collection Compliance Experts – “The Power of Expertise: Oversight Perfected”
It’s that easy! Twice a month – we provide blog updates and Resources for the Collection and Industry Professional.
Your email is just for this newsletter. We never sell your information. No fee. Opt-out at any time.
