CFPB Takes Aim at Collections in their Summer 2024 Supervisory Highlights
On July 2nd, the Consumer Financial Protection Bureau (CFPB) released their Summer 2024 Supervisory Highlights. Within its twenty pages are a litany of allegations against the collectors who fall under their supervisory wing. Amongst those complaints are claims of;
- Failure to provide debt validation notice to consumers
- Using false, deceptive or misleading representations
- Communicating with consumers at inconvenient or unusual times or places
- Harassing, oppressive, or abusive conduct in connection with the collection of debt
- Failure to disclose in subsequent communications that communication is from a debt collector
Just to name a few.
This being their 34th edition of their Supervisory Highlights, it sounds a bit like a broken record. These complaints are identical if not eerily similar to the complaints that they have been levying against lenders and their servicers since their inception. And with their well-publicized findings have come unknown hundreds of millions of dollars of imposed fines that have been funneled their way to maintain their operations free from the scrutiny of congress and any oversight.
But now, with the recent Supreme Court Ruling overturning the Chevron doctrine diminishing Federal regulators powers to impose fines without legal precedent, it’s to be seen how much power they will have lost. What’s equally in question is how many lawsuits and appeals to prior fines imposed by them may come.
On a separate note, despite their mentioning of auto loan servicing, there were no mentions of repossession anywhere in their findings. I suspect this is coming up. If you may recall, back in March 24’, they began compiling data from lenders on their repossession practices with special attention to the use of LPR and forwarding companies. I suspect this may be where the real fireworks happened when they are released.
Source: CFPB
Kevin Armstrong
Publisher
CFPB Takes Aim at Collections in their Summer 2024 Supervisory Highlights – CFPB Takes Aim at Collections in their Summer 2024 Supervisory Highlights – CFPB Takes Aim at Collections in their Summer 2024 Supervisory Highlights
CFPB Takes Aim at Collections in their Summer 2024 Supervisory Highlights – Consumer Financial Protection Bureau – CFPB – Credit Union Collections – Credit Union Collectors – Delinquency – Fair Debt Collection Practices Act – FDCPA – Auto Loan
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