ARLINGTON, Va.—NAFCU has sent a letter to CFPB Director Richard Cordray supporting the Bureau’s decisions around third-party debt collectors, but also asking that future debt collector proposals recognize the unique structure of credit unions.
“NAFCU is grateful that the CFPB decided to divide the SBREFA process into two panels to distinguish between first- and third-party debt collectors, and urges the CFPB to continue with separate rulemaking,” wrote NAFCU Regulatory Affairs Counsel Ann Kossachev. “NAFCU also asks the CFPB study the indirect effect that future rulemaking for third-party debt collectors may have on credit unions’ bottom line and, with that in mind, consider first-party debt collector proposals that recognize the one-of-a-kind structure and goals of credit unions.
“NAFCU and its members support increased transparency and enhanced consumer understanding in the debt collection process, but simultaneously urge the CFPB to conduct actual studies about the debt collection industry and the type of policies and procedures utilized by credit unions,” continued Kossachev.
Kossachev added that credit unions are not the industry players “ignoring the rules of the game. Credit unions already abide by policies and procedures that ensure their members are not subject to abusive debt collection practices. While considering proposals for first-party debt collectors, the CFPB should acknowledge, as it has done in the past, that credit unions are not the bad actors. The CFPB should also strive to cultivate proposals that are workable and do not impose significant costs on credit unions.”