CFPB Authorizes Collections on Time-Barred Accounts Without a Disclosure ("The Debt Collection Drill")
With the Consumer Financial Protection Bureau (CFPB) scheduled to commence exercise of its rule-making authority later this year, many collection industry experts were surprised by a joint amicus brief filed by the Federal Trade Commission (FTC) and the CFPB stating that, "[I]n 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." Click here to read the full amicus brief filed by the FTC and the CFPB.
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.
Moss & Barnett attorneys John Rossman and Mike Poncin examine the recent rulings of the CFPB and FTC – and the possible implications of CFPB rulemaking – in this latest episode of The Debt Collection Drill, entitled "CFPB Authorizes Collections on Time-Barred Accounts Without a Disclosure" (approximately nine minutes in length).