On September 18, BPI submitted a response to the CFPB’s proposal to modernize debt collection practices under the Fair Debt Collection Practices Act (FDCPA). The letter supports the CFPB’s goal to modernize the debt collection regulatory framework but recommends that the CFPB should solely engage in its rulemaking under the FDCPA, rather than applying its general “unfair, deceptive, and abusive acts and practices” (UDAAP) authority to certain provisions in the proposal. Relying on UDAAP for these provisions, as the letter outlines, would create legal uncertainty related to the application of the rule for first-party collection activities, which are distinct from the third-party collection activities covered by the FDCPA. Further, the letter recommends clarifying the standards for “inconvenient” contacts and tailoring the proposed restrictions on debt sales and litigation, and also seeks further clarification regarding those standards related to personal representatives, the definition of “original creditor,” and certain aspects of the validation notice requirement.
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