CUNA letter to CFPB on SBREFA process for third party collectors

From: CU Press

On behalf of America’s credit unions, I am writing regarding the Consumer Financial Protection Bureau’s (CFPB) recent release of the proposals for a Small Business Review Panel in accordance with the Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA) for the Fair Debt Collection Practices Act (FDCPA). Credit Union National Association (CUNA) represents America’s credit unions and their more than 100 million members.

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Congress Has Not Provided Authority to Include Credit Unions Under FDCPA Rules

When Congress enacted the FDCPA and for decades since, it clearly recognized that including credit unions in rules addressing abusive debt collection practices is not necessary because credit unions are not only highly regulated and supervised but they also have a built-in and longstanding relationship with their members. Since the enactment of the FDCPA, no subsequent law, including the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), has changed this directive.

Further, Congress recently urged the CFPB to tailor its rules so financial institutions acting responsibly are not unnecessarily hampered by additional compliance requirements. Congress provided this authority expressly in Section 1022 of the Dodd-Frank Act when clearly outlining,

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