Scramble Ahead of CFPB’s Revamped Rules

The Consumer Financial Protection Bureau’s overhauled rules are set to take effect Nov. 30, and banks, credit card companies and debt collectors who lobbied for the changes are hurrying to make changes that require a high level of coordination with each other. They are about to reap the benefits of unlimited contact with consumers by email and texts, but technology and information sharing changes are needed for third-party debt collectors to take advantage of “safe harbors” in the new protocol that will protect them from legal liability. Requirements that consumers be given an itemized list of their debt and told how to opt out of electronic communications are creating problems. Providing a breakdown of the debt is proving to be a hurdle. There are also concerns about oversight and monitoring of third-party vendors. Incoming CFPB Director Rohit Chopra has vowed to aggressively pursue enforcement actions against companies that harm consumers. Debt collectors will be allowed to call debtors up to seven times per week.