Bureau updates status of debt collection, arbitration, overdraft
Dec. 5, 2016 -- A report on findings of a consumer survey related to a proposed rule regulating debt collection – and other actions – are outlined in the Consumer Financial Protection Bureau’s Fall 2016 rulemaking agenda, published Friday by the agency.
The survey collected information from consumers about their experiences with debt collection; publication of results (expected early next year) follows proposals published by the agency this summer to limit collector contact and to ensure correct debt is collected.
Also on the rulemaking agenda, CFPB stated that it is:
- Reviewing comments on its proposal concerning arbitration clauses in consumer financial agreements. The proposal, CFPB noted, was primarily focused on addressing concerns that arbitration clauses are being used to prevent groups of consumers from joining together to seek effective relief from wrongdoing by financial companies.
- Reviewing comments on its notice of proposed rulemaking regarding payday, auto title and similar lending products. According to CFPB, it has been “particularly concerned” about practices that result in the products becoming debt traps for consumers.
- Continuing research, and has begun consumer testing initiatives, related to the “opt-in” process for checking overdraft services.
- In early stages of implementing section 1071 of the Dodd-Frank Act, amending the Equal Credit Opportunity Act, to require financial institutions to report information concerning credit applications made by women-owned, minority-owned, and small businesses.