CFPB releases debt collection, 'know before you owe' initiatives
Aug. 1, 2016 -- An outline of possible key proposals affecting debt collection, and a proposal about "know before you owe" mortgage disclosure rules, have been floated in the past few days by the Consumer Financial Protection Bureau (CFPB).
Under the possible debt collection proposals, collector contact attempts would be capped and companies would be required to have more and better information about the debt before they collect. And, as they are collecting, debt collectors would be required (among other things) to limit communications, clearly disclose debt details, and make it easier to dispute the debt. When responding to disputes, collectors would be prohibited from continuing to pursue debt without sufficient evidence, CFPB stated in a release. The bureau added that these requirements and restrictions would follow the debt if it were sold or transferred.
Under the "know before you owe" proposal, guidance in the existing rule would be formalized and -- the bureau stated in another release -- "provide greater clarity and certainty." The agency stated that changes it is proposing would "augment implementation of the Know Before You Owe rule" and "help facilitate compliance within the mortgage industry."