CFPB Addresses Collection of Time-Barred Accounts, But More Guidance Needed

With the Consumer Financial Protection Bureau (CFPB) scheduled to commence exercise of its rule-making authority later this year, many debt collection industry experts were surprised by a joint amicus brief filed by the FTC and the CFPB that stated in part, “…in some circumstances, a debt collector may seek voluntary payment of a time-barred debt without violating the FDCPA, even if the communication is silent as to the statute of limitations.”

Read the full amicus brief by the FTC and the CFPB at http://files.consumerfinance.gov/f/201309_cfpb_agency-brief_12-cv-04057.pdf

Consent orders earlier this year by the FTC regarding credit card surcharges (convenience fees) and voice mail messaging indicate a willingness by Federal regulators to allow these practices but provide little guidance for the industry, further confusing the matter.

Attorneys John Rossman and Mike Poncin examine the recent rulings the CFPB and FTC – and the possible implications of CFPB rulemaking – in the latest episode of their ARM legal audio blog The Debt Collection Drill.

Listen to the 9-minute episode below:

More Guidance Needed on CFPB and FTC Positions

(if you can’t see the player above, listen to the clip at http://traffic.libsyn.com/thedrill/TDCD_ep31.mp3)

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