ICFE eNEWS #16-08 - March 29th 2016
CFPB Issues 2016 FDCPA Report
Barbara S. Mishkin
The Consumer Financial Protection
Bureau (CFPB) has issued its
fifth annual Fair Debt Collection Practices Act report covering
the CFPB's activities in 2015.
In the background section
of the report, the CFPB provides various statistics about the debt
collection industry and consumer debt. The CFPB observes that there
has been a significant increase in consumer FDCPA litigation, with
4,316 cases in 2007 and 11,697 cases in 2015.
the report's section on debt collection complaints, the CFPB handled
approximately 85,200 complaints in 2015, which was 3,100 fewer than
in 2014. (It is unclear whether the 2015 number includes payday
loan complaints which, according to
recent testimony given by Director Cordray to the House Financial
Services Committee, were wrongly classified as debt collection complaints.)
The most common complaint was about attempts to collect a debt that
the consumer claimed was not owed and the second-most-common issue
was communication tactics.
In the report's section on the
CFPB's supervision of debt collectors that qualify as "larger
participants," the CFPB describes the following FDCPA violations
or circumstances creating risks of FDCPA violations found by its
With regard to rulemaking, Director Cordray, in his introductory
message, stated that the CFPB "continues its effort to develop
the first comprehensive federal regulations covering debt collection.
We are considering provisions to ensure that debt collectors have
sufficient information to collect the debt, prevent unfair, deceptive
and abusive acts and practices, inform consumers of their rights,
and provide interpretation of some sections of the FDCPA."
He offered no timetable for rulemaking, indicating only that the
CFPB "is preparing to convene one or more Small Business Regulatory
Enforcement Fairness Act panels before issuing a notice of proposed
- Failing to state in subsequent phone calls that the call
was from a debt collector
- Failing to honor requests to cease communications with the
consumer or maintain adequate systems to comply with FDCPA requirements
regarding communications with consumers, such as when a collector
knows a consumer is represented by an attorney or knows the
consumer's employer prohibits the consumer from receiving calls
- Use of false, deceptive or misleading statements to collect
a debt, such as statements regarding the collector's credit
reporting practices with regard to deleting tradelines and investigating
disputes and threats to use garnishment against borrowers who
were not eligible for garnishment
The report also describes fifteen debt
collection enforcement actions filed by the CFPB in 2015 and three
pre-2015 collection actions that continued in 2015. (Among those
actions are the CFPB's actions against
Universal Debt & Payment Solutions, LLC,
NDG Financial Corp.,
Westlake Services, LLC,
Eric V. Sancho,
Corinthian Colleges, and
The report incorporates information provided
to the CFPB by the FTC in its
letter to the CFPB on the FTC's 2015 debt collection activities.
(The FTC letter is an Appendix to the report
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Paul S. Richard
President - Executive Director
Institute of Consumer Financial Education (ICFE)
About the ICFE:
The Institute of Consumer Financial Education (ICFE) was founded in 1982 by the late Loren Dunton (creator of the Certified Financial Planner (CFP) designation). The ICFE is dedicated to helping consumers of all ages to improve their spending, increase savings and use credit more wisely.
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The ICFE became an official partner with the Department of Defense/Financial Readiness Campaign in June of 2004.The ICFE was an active partner in the California Student Debt Resource Awareness Project (CASDRAP) which resulted in a new web site: (studentdebthelp.org). CASDRAP disbanded in 2010, shortly after the web site project was completed. In 2011 the ICFE assumed the single sponsorship of the (studentdebthelp.org) web site and is now responsible for its content and operation.
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