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With Mulvaney at the Helm, CFPB Debt Collection Rule Faces Elimination

The Consumer Financial Protection Bureau (CFPB) was expected to announce its rule governing debt collection by third parties “any time now,” but with the reaffirmation of Mick Mulvaney as the agency’s interim director, the rule could be voided or drastically changed, said Christopher Willis, partner at Ballard Spahr LLP.

“I would expect that any industry-wide pronouncements that the agency would make would now be filtered through the director and likely impacted by the identity of the new director,” Willis told Auto Finance News, noting Mulvaney’s record of deregulation. “I’d be surprised if that proposed [debt collection] rule comes out at all now, and if it does, it would be delayed and modified significantly from the outline released a year ago.”

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