Potential FDCPA Changes Should Be on Your Credit Union’s Radar
On May 7th, 2019, the Consumer Financial Protection Bureau issued a Notice of Proposed Rulemaking (NPRM) to implement the Fair Debt Collection Practices Act (FDCPA). The NPRM would provide consumers with the following protections against debt collectors:
Set clear, bright-line limits on the number of calls debt collectors may place to reach consumers on a weekly basis
Clarify how collectors may communicate lawfully using newer technologies, such as voicemails, emails and text messages, that have developed since the FDCPA’s passage in 1977
Require collectors to provide additional information to consumers to help them identify debts and respond to collection attempts
Note that the FDCPA generally only applies to entities collecting debts on behalf of others. Your credit union may not do this and therefore is not strictly held to the standards set in the FDCPA. However, complying with the FDCPA, while not necessarily required, can help insulate your credit union from allegations of unfair, deceptive or abusive acts or practices. Doeren Mayhew suggests your credit union be familiar with the requirements of the FDCPA and consider holding your collection department and efforts to these same standards.
John Zasada, JD, CAMS – Regulatory Consulting Director, Financial Institutions Group. John can be reached at email@example.com.
This publication is distributed for informational purposes only, with the understanding that Doeren Mayhew is not rendering legal, accounting, or other professional opinions on specific facts for matters, and, accordingly, assumes no liability whatsoever in connection with its use. Should the reader have any questions regarding any of the news articles, it is recommended that a Doeren Mayhew representative be contacted.
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