Compliance and Regulatory News
In July 2013, the CFPB began accepting debt collection complaints and marked the beginning of a new chapter for our industry. All parties in the process from the Banks and Credit Unions, sideways to the CPI insurance providers, down thru JPA and further down still to final disposition faced increased compliance pressure. Now post the 2nd Quarter reset of 2020, we are preparing for Regulation F, the first change to the FDCPA since enacted.
2021 Regulatory Compliance Updates
JPA is a licensed investigations company with the mission and motto of "Service and Results with Integrity".
We follow all applicable federal laws and regulations, including, but not limited to the GLBA, the FDCPA and the FCRA.
Please use links below for "in the know" associations and organizations with good, concise breakdowns of the current regulatory environment, new developments and compliance topics.
"Integrity has no need of rules." Albert Camus
A Rule by the Consumer Financial Protection Bureau on 1/19/2021
The Bureau of Consumer Financial Protection (Bureau) is issuing this final rule to revise Regulation F, which implements the Fair Debt Collection Practices Act (FDCPA). The final rule governs certain activities by debt collectors, as that term is defined in the FDCPA. Among other things, the final rule clarifies the information that a debt collector must provide to a consumer at the outset of debt collection communications, prohibits debt collectors from bringing or threatening to bring a legal action against a consumer to collect a time-barred debt, and requires debt collectors to take certain actions before furnishing information about a consumer's debt to a consumer reporting agency.
This rule is effective on November 30, 2021.
Six Things Creditors Should Know About the New Federal Debt Collection Rule
By: Susan Manship Seaman December 28, 2020
Nearly five years after starting rule making efforts, the Consumer Financial Protection Bureau (“CFPB”) has finalized part one and part two of its debt collection rule under the federal Fair Debt Collection Practices Act (“FDCPA”). The federal rule (known as Regulation F) becomes effective on November 30, 2021. Regulation F is the first regulation to implement substantive provisions of the FDCPA since the law was enacted in 1977. In addition to regulating third-party debt collectors subject to the FDCPA, Regulation F has a number of implications for creditors. This article highlights six points that creditors should know about Regulation F. This list is not exhaustive.
1. Regulation F does not solely affect third-party debt collectors.
Regulation F could affect creditors regardless of whether a creditor is engaged in first-party or third-party collections or is a debt buyer. If a creditor is a “debt collector” under the FDCPA, Regulation F applies directly to the creditor and the creditor must comply with Regulation F. Even if a creditor is not a “debt collector” directly subject to the FDCPA, Regulation F could impact a creditor’s collection functions in two ways.
H.R.1651 - COVID-19 Bankruptcy Relief Extension Act of 2021
117th Congress (2021-2022)
Public Law No: 117-5 (03/27/2021)
COVID-19 Bankruptcy Relief Extension Act of 2021
This bill extends existing provisions that provide relief to debtors in bankruptcy, including those related to the COVID-19 (i.e., coronavirus disease 2019) pandemic.
These provisions (1) exclude certain COVID-19 aid payments from income for the purposes of bankruptcy, and (2) increase the debt eligibility threshold for businesses qualifying for certain types of Chapter 11 reorganization bankruptcy. Currently, these provisions expire March 27, 2021. The bill extends these provisions for one year.
The bill also allows for modification of a Chapter 13 repayment plan for plans confirmed before the date of enactment of this bill if the debtor is experiencing material financial hardship due to COVID-19. Currently, such a modification is only available for plans confirmed before March 27, 2020.
CFPB Considers Debt Collection Rules
Nov 06, 2013
Bureau Also Releases 5,000 Debt Collection Complaints
Washington, D.C. – The Consumer Financial Protection Bureau (CFPB) today took the first step toward considering consumer protection rules for the debt collection market. Through its Advance Notice of Proposed Rulemaking (ANPR), the Bureau is collecting information on a wide array of issues, including the accuracy of information used by debt collectors, how to ensure consumers know their rights, and the communication tactics collectors employ to recover debts. The Bureau also announced today that it will begin adding consumer complaints about debt collections to its public Consumer Complaint Database.
CFPB - Annual Report / March 20, 2013
On July 21, 2011, the Consumer Financial
Protection Bureau was launched as the first
government agency solely dedicated to consumer financial protection.
This annual report describes efforts taken in the past year to administer the Fair Debt Collection Practices Act (“FDCPA”).