CFPB Speech to Chamber of Commerce Hints at Direction of Collection Rulemaking

CFPB Deputy Director Steve Antonakes yesterday discussed debt collection rulemaking noting that his agency is particularly concerned that “the accuracy of account information degrades as it is passed on from the original creditor to debt collection firms or debt buyers.”

In a speech Wednesday at the U.S. Chamber of Commerce’s 8^th Annual Capital Markets Summit, Antonakes noted that while the collection of consumer debts serves an important role in the proper functioning of consumer credit markets, “certain debt collection practices have long been a source of frustration for many consumers, generating a heavy volume of consumer complaints at all levels of government.”

Antonakes commented that assuring debt collectors are contacting the right consumers about the right debt is a top priority for the CFPB in its rulemaking activity after the closure of the comment period on its advance notice of proposed rulemaking for debt collection.

The remarks mirror those made by Antonakes last week in a speech at the National Community Reinvestment Coalition Annual Conference.

The speech at the Chamber of Commerce event also noted that consumer complaints “are not only opportunities for us to assist specific people; they also make a difference by informing our work and helping us identify areas of concern, which then feed into our supervision and enforcement prioritization process.” Antonakes said that debt collection accounts for the largest volume of complaints, with the CFPB receiving around 6,200 each month.

At the close of his remarks, a member of the Chamber told Antonakes that his group’s one recommendation to the Bureau is that the rulemaking process “could be slower” to ensure the proper rules are written.

Yesterday also marked the release of the Chamber of Commerce’s 2014 Regulatory Reform Report Card, which grades whether regulatory reform is working or not — specifically for Main Street.