On May 7, 2019, the CFPB released a Notice of Proposed Rulemaking to implement the Fair Debt Collection Practices Act.  This long-planned proposal would provide consumers with a number of protections such as restrictions against harassment by debt collectors as well as clear options to dispute debts.  The proposed rule would also establish “bright-line” limits that creditors must follow regarding the number of calls they can make to consumers.

On May 10, 2019, the Federal Reserve released their semi-annual report on supervision and regulation.  This report, which summarizes banking conditions and he Fed’s supervisory and regulatory activities, runs 44 pages long and includes two appendices.  The “Supervisory Developments” section of the report outlines the Fed’s examination process by explaining the examination process and outline key safety and soundness concerns.

On April 25, 2019, the CFPB issued a “Request for Information” (RFI) on its remittance rule.

Implemented a few years ago, the Remittance Rule has fairly strict requirements for companies which send international money transfers - known as “remittance transfers” - on behalf of consumers. Among its requirements, the Rule mandates that providers generally must disclose the exact exchange rate, the amount of certain fees, and the amount expected to be delivered to the recipient.     

On April 17, 2019, new CFPB Director, Kathleen Kraninger presenter her first public speech at the Bipartisan Policy Center.  In this speech, Director Kraninger outlined her agenda for the direction of the CFPB by explaining that she intends to utilize all available tools to prevent consumer harm including education, regulation, supervision, and enforcement.  The speech began by discussing how the CFPB hopes to…

On March 20, 2019, the Federal Trade Commission (FTC) announced that the FTC and CFPB provided their joint annual report to Congress regarding the agencies efforts to administer the Fair Debt Collection Practices Act.  This report is just one more indicator of the increasing focus of debt collection practices of financial institutions.

In this joint report the CFPB explained that it plans to provide a Notice of Proposed Rulemaking relating to debt collection practices sometime in the spring of 2019.

The bottom line is that debt collection practices continue to be an increasing hot topic with regulators.  Therefore, we will be including the annual report to Congress in our next Quarterly Compliance Update, which will be available for purchase later in April.

On March 12, 2019, the CFPB published their 2019 Winter Edition of Supervisory Highlights, which marks the eighteenth issue of this publication, and the first under Director Kathy Kraninger.

As has been the case with prior editions, this edition of the publication included five main sections including an introduction, supervisory observations, remedial actions, supervision program developments, and conclusion - and includes topics like automobile and mortgage servicing, deposits, and remittances.