The CFPB Issues Two Final Rules on Debt Collection, Treatment of Confidential Information

  • The Consumer Financial Protection Bureau (“CFPB”) issued a final rule restating and clarifying prohibited practices and conduct by consumer debt collectors and explaining how consumer protections under the Fair Debt Collection Practices Act apply to electronic communications. Among other things, the rule establishes a presumption that debt collectors act illegally if they place more than seven calls on seven consecutive days to the same consumer in connection with the same debt. The rule also requires debt collectors to provide instructions in each electronic communication that provide for a simple and reasonable way for a consumers to opt-out of receiving further electronic communications.
  • The CFPB also issued a final rule amending its Disclosure of Records and Information Regulation to address the treatment of confidential information that the CFPB generates or receives in connection with exercising its authority. Among other things, the rule revises previous rules related to the CFPB’s information practices, including how it shares confidential and sensitive information with other agencies and with its contractors, and improves the CFPB’s ability to protect confidential information.