Mortgage

CFPB is making an attempt to delay the implementation of the gathering guidelines

The Consumer Financial Protection Bureau on Wednesday proposed postponing the implementation of two new rules of the Fair Debt Collection Practices Act for communicating with borrowers, which currently begin November 30th.

A rule describes what harassment, misrepresentation and unfair collection agency practices mean. The other point clarifies the information collectors must provide to consumers in relation to communicating with credit bureaus and prohibits collectors from suing borrowers with statute-barred debt.

The delay would mean that third-party mortgage service providers and other FDCPA-regulated companies won't be able to use the new safe havens for compliance until January 29, 2022. The proposal has 30 days to comment.

Acting CFPB director Dave Uejio had previously signaled that he might move the rules to rethink them. However, the current proposal only stipulates that the office would like to give affected parties more time to comply due to the pandemic.

The proposed delay comes a day after the CFPB issued a consent form against a debt collection agency, Yorba Linda Capital Management, for allegedly harassing thousands of consumers by falsely threatening them with legal action.

"Collection agencies often violate consumer law when they force customers to pay by exaggerating the consequences of not paying," said Uejio in a press release released Tuesday.

He called the campaign "a reminder that debt collection agencies must stick to the truth when communicating with customers."

In the informed consent form, the CFPB requests the debtor to make a civil money payment of $ 2,200 to the office and requests financial relief and damages totaling $ 860,000.

However, full payment of the relief has been suspended as respondents claim they are currently unable to pay according to the informed consent.

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