WASHINGTON—CUNA advocacy staff and a number of its member credit unions met with the Consumer Financial Protection Bureau Monday to discuss debt collection.
During the meeting, the group discussed the CFPB’s outline of proposals under consideration for third-party debt collectors, as well as other bureau debt collection activities, CUNA said.
The CFPB released proposals it is considering on third-party debt collection in July, and could issue a proposed rule sometime in the next few months, noted CUNA, which added that it expects the Bureau will hold a separate Small Business Regulatory Enforcement Act panel for first-party creditors and collectors. CUNA said it will continue to engage with the CFPB to represent the interests of credit unions.
During Monday’s meeting, participants outlined some of the concerns credit unions have with the proposal. Specifically, CUNA and the credit unions urged the CFPB not to restrict important communications between credit unions and members than can help members favorably resolve outstanding debt.
According to CUNA, the group also urged the CFPB to:
- Consult with the Federal Communications Commission to resolve the July 2015 Telephone Consumer Protection Act order that has harmed credit unions’ ability to communicate with their members;
- Work closely with the NCUA when creating policies for debt collection. “Specifically, CUNA outlined recent conflicts between CFPB debt collection policies, NCUA guidance and the Federal Credit Union Act,” the trade association said.