CFPB publishes spring program for rule making with pending decision on …

The Consumer Financial Protection Bureau has released its latest regulatory program with an update on Reg F and the process for extending the effective date of the Debt Collection Final Rule from November 30, 2021 to January 29, 2022.

“The agenda lists the regulatory issues that, to further our mission and our consumer protection mandate, we are currently pursuing under interim leadership pending the appointment and confirmation of a permanent director,” according to a blog post on the agenda from the Assistant Director, Regulatory Susan Bernard.

Changes made to the regulatory program by the permanent director of the office will be reflected in the fall regulatory program.

David Uejio is currently acting director of the bureau while President Joe Biden’s candidate for director, Rohit Chopra, awaits confirmation from the US Senate. Chopra is a commissioner of the Federal Trade Commission, which is made up of five commissioners, including the chairman, up to three of whom are from the same political party. With the recent confirmation of Biden’s candidate, Lina Khan, the FTC will maintain a Democratic majority. Khan’s confirmation will certainly advance the Senate process to vote on Chopra’s confirmation as director of the Consumer Financial Protection Bureau. If confirmed, Chopra will have to resign from the FTC, leaving Biden an additional commissioner position to be filled and to announce a permanent chairman. Rebecca Slaughter is currently Acting President of the FTC.

“We have also taken steps and planned further actions to focus our resources on addressing the negative impacts on consumers in light of the ongoing COVID-19 pandemic and resulting economic crisis, and we let us take concrete steps to strengthen our commitment to promote racial and racial discrimination. economic equity, ”Bernard wrote in the blog post.

Date of entry into force of debt collection rules

In April, the CFPB proposed to postpone the effective date of Reg F to allow accounts receivable management (ARM) stakeholders affected by the pandemic to have additional time to review and implement Reg F, ACA International reported previously.

The bureau’s next action is a final rule on whether and how long to extend the effective date of the Reg F after considering the comments submitted, according to Bernard.

Comments on the rule were expected in May. In its comments, the ACA urged the CFPB to be transparent about the reasoning behind the proposed postponement of the effective date, the ACA previously reported.

For more information on ACA’s advocacy and its work with regulators and Congress, visit ACA Decision Makers website.

Additional highlights from the CFPB Spring Program:

  • The office issued an interim final rule regarding the moratorium on evictions issued by the U.S. Centers for Disease Control and Prevention (CDC). The interim rule, which was released on April 19 and is therefore not included in the latest regulatory program, addresses certain debt collection behaviors associated with the CDC’s eviction moratorium order, which is in effect until ‘as of June 30, 2021. ACA filed comments on the final rule in May after gathering feedback from members of those affected. The rule is intended to clarify the liability for unlawful evictions under the Fair Debt Collection Practices Act. CFPB rule requires “debt collectors” to provide tenants with written notice of their rights under the eviction moratorium and prohibits “debt collectors” from misrepresenting tenants’ eligibility for eviction protection under the moratorium, ACA reported previously. Lawyers who initiate eviction proceedings on behalf of owners or owners of residential buildings to collect unpaid residential rents may be “debt collectors” within the meaning of the FDCPA. “In its outreach efforts with members, the ACA has heard only one member, out of 2,100, who is related to this type of debt collection,” said Federal Vice President and Senior Advisor Advocacy Leah Dempsey. “However, we can assume that there are likely a limited number of other members across the country who are linked to the landlord-tenant relationship by providing debt collection services for unpaid legal obligations.”
  • The office is also considering a long-term rule on artificial intelligence. The Federal Reserve Board, CFPB, Federal Deposit Insurance Corporation, National Credit Union Administration, and Office of the Comptroller of the Currency have announced a Request for Information (RFI) to seek advice from financial institutions, associations professionals, consumer groups and other stakeholders on the growing use of artificial intelligence, the ACA reported previously. More specifically, the RFI is seeking comments to better understand the use of artificial intelligence, including machine learning, by financial institutions; appropriate governance, risk management and controls in artificial intelligence; challenges related to the development, adoption and management of artificial intelligence; and whether clarification would be helpful. Comments are expected on July 1.

Additional regulatory activities of the office include issuing a Notice of Proposed Small Business Lending Data Regulatory Notice and reviewing regulations to implement Section 1033 of the Dodd-Frank Act, which would address the availability of consumer financial account data in electronic form.

The full CFPB spring agenda is available here.

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