Public Comments Invited – CFPB Proposes New Rule on Medical Debt Reporting 

The Consumer Financial Protection Bureau (CFPB) is inviting public input on a proposed amendment to Regulation V, which enforces the Fair Credit Reporting Act (FCRA). This amendment focuses on medical information in credit reports and aims to enhance consumer protection regarding medical debt.  Key Changes in the Proposed Rule  The CFPB is looking to eliminate a current regulatory exception that allows creditors to obtain or use medical debt information when […]

Why is Auto Deficiency Balance Collections A Challenge? 

If you have listened to collectors working on auto deficiency accounts, you will see that it is very challenging to encourage customers to pay. Part of the problem is that collectors often struggle to understand the loan process for charged-off or repossessed auto loans. The typical response is that it’s not about the vehicle; it’s about the loan taken from the finance company. This often ends the discussion about why […]

New Rule to Stop Unfair Payday Lending Practices Set to Take Effect in 2025 

Several years ago, the Consumer Financial Protection Bureau (CFPB) took a big step to protect consumers from unfair and abusive practices in the payday and installment lending industry. After a thorough review of the market, the CFPB discovered a troubling trend: lenders repeatedly attempting to withdraw money from consumers’ accounts even after the accounts were empty. One particularly shocking example revealed a lender making 11 failed withdrawal attempts in a […]

New Privacy Laws Coming to Montana, Oregon, and Texas in July 2024 

Starting in July 2024, new privacy laws will be enacted in Montana, Oregon, and Texas, providing significant consumer protections regarding personal data. These laws grant consumers the right to know what information is being collected about them, the right to be forgotten, and the right to know who is accessing their information.  “These laws basically give huge superpowers to state attorney generals to enforce them,” it was emphasized.  Here’s a […]

Empowering Consumers: CFPB’s Proposal to Reform Credit Reporting and Medical Debt 

In a notable move to ease the pressures of medical debt and protect consumers’ financial well-being, the Consumer Financial Protection Bureau (CFPB) has introduced a proposal. This proposal aims to update credit reporting practices by removing medical bills from most credit reports, enhancing privacy protections, improving credit scores and loan approvals, and curbing coercive debt collection tactics. The Need for Change  Medical bills have long been a challenge in the […]

New Rule to Improve Consumer Protection: Establishing a Public Registry of Nonbank Orders 

The Consumer Financial Protection Bureau (CFPB) has issued its final rule requiring nonbank entities, including debt collectors, to register with the bureau when they are subject to local, state, or federal court or agency enforcement actions.  Debt collection companies that bring in more than $10 million annually are considered a nonbank entity.  This substantial move to enhance consumer protection involves the creation and maintenance of a registry to collect information […]

FTC’s 2023 Report to CFPB: Key Highlights and Consumer Protections

The Federal Trade Commission (FTC) has recently submitted its annual report to the Consumer Financial Protection Bureau (CFPB), detailing its enforcement and related activities for 2023. This report covers the FTC’s efforts under the Truth in Lending Act (TILA), the Consumer Leasing Act (CLA), and the Electronic Fund Transfer Act (EFTA), reflecting the changes instituted by the Dodd-Frank Act.  Signed into law on July 21, 2010, the Dodd-Frank Act significantly […]

The Cake Theory of Collector Scorecards

When I meet with collection teams, I always ask collectors, “How do you know you are doing well every month?” Their answers give me a good sense of how much leadership values performance and recognizes the team.  If the response is something like, “Well, I am still here,” or “I got a bonus last month,” it indicates limited discussion regarding individual performance. However, if the answer is, “Let me show […]

CFPB Classifies Buy Now, Pay Later Lenders as Credit Card Providers: What It Means for Consumers

The Consumer Financial Protection Bureau (CFPB) has recently issued an interpretive rule that classifies Buy Now, Pay Later (BNPL) lenders as credit card providers. This decision, announced through a press release, mandates that BNPL lenders extend key consumer rights and legal protections typically associated with traditional credit cards. This move aims to address growing concerns about consumer protection in the rapidly expanding BNPL market.  Key Protections Under the New Rule  […]

Supreme Court Upholds Consumer Financial Protection Bureau’s Funding 

In a notable ruling, the U.S. Supreme Court has upheld the funding structure of the Consumer Financial Protection Bureau (CFPB), concluding that it does not violate the Constitution’s separation of powers clause. Justice Clarence Thomas authored the decision, which passed with a 7-2 majority. Justices Samuel Alito and Neil Gorsuch dissented.  The case, Community Financial Services Association of America Ltd. (CFSA) v. CFPB, revolved around whether funding the CFPB through […]