Collector - September 2016 - (Page 36)

CFPB Small Talk ACA Fall Forum speaker Robert Föehl explains what role the CFPB's SBREFA panel plays in the debt collection rulemaking process. the A lmost three years ago, the Consumer Financial Protection Bureau released a comprehensive Advance Notice of Proposed Rulemaking for the debt collection industry. Since then, industry participants have waited with baited breath to see these rules and determine how they will have to adjust their business practices. After many delays, the CFPB recently took a significant next step in the debt collection rulemaking process. On July 28, the CFPB held a field hearing in Sacramento, Calif., announcing the beginning of the Small Business Advocacy Review Panel process for the debt collection rulemaking. Robert Föehl, ACA International's vice president and general counsel, recently spoke with Collector about this next step in the rulemaking process and why it's so important. WHAT'S THE PURPOSE OF THE SMALL BUSINESS ADVOCACY REVIEW PANEL? Under the Small Business Regulatory Enforcement Fairness Act, covered agencies are required to convene a Small Business Advocacy Review Panel for rules that are expected to have a significant economic impact on a substantial number of small entities. The purpose of the panel is to obtain input from small businesses that are likely to be directly affected by a regulation under consideration. Currently, there are only three agencies that are required to convene a SBREFA panel as part of their rulemaking process: the Environmental Protection Agency, the Occupational Safety and Health Administration, and the Consumer Financial Protection Bureau. 36 HOW DOES THE PANEL WORK? Under the law, when a rule under development may have a significant economic impact on a substantial number of small entities, then the covered agency- here the CFPB-must convene a SBREFA panel. The panel consists of representatives from three different agencies: the CFPB, the Office of Management and Budget's Office of Information and Regulatory Affairs, and the Small Business Administration's (SBA's) Office of Advocacy. The panel meets with small entity representatives (SERs) who are selected to provide advice and recommendations on the CFPB's proposals under consideration. During this outreach meeting, small businesses provide the panel with important input, including potential compliance burdens and anticipated costs of the proposed regulations. At the meeting, the panel may ask the representatives to help identify other federal regulations that may overlap, duplicate or conflict with what the CFPB is considering for a proposed rule, as well as solicit advice regarding potential regulatory alternatives that would minimize any significant economic impacts of the proposed rule on small businesses while accomplishing the objectives of applicable statutes. The panel may also solicit feedback on how the proposals under consideration may impact the cost of credit for small entities and ways to minimize any such impact. In addition to participating in the outreach meeting, SERs are given the opportunity to submit written comments to provide further information on the proposals. The statute requires that the panel complete a report within 60 days of when it convenes that contains recommendations based on the outreach process. The CFPB publishes the SBREFA panel report with the proposed rule. HOW ARE PARTICIPANTS SELECTED? The CFPB, in consultation with SBA, selects and appoints individuals to represent categories of small entities likely to be subject to the requirements of a rule under development. Classification of small business status varies by industry and is tied to the SBA's size standards. Based on the size standard for collection agencies, only agencies that have less than $15 million in annual receipts would be considered "small" for SBREFA purposes. There are no formal limits to the number of SERs who can participate in a SBREFA panel meeting, but typically between 15-20 SERs are selected. [Editor's note: Details on the panel participants were not available at press time.] ACAINTERNATIONAL.ORG http://www.ACAINTERNATIONAL.ORG

Table of Contents for the Digital Edition of Collector - September 2016

Industry News
Best Practices
Collection Tips
5 Ways to Get Electronic Payments Right
Making the Connection
Curious About Amicus Curiae?
Honor Roll
Small Talk
Know the Score
What Creditors Need to Know About the TCPA
ACA Industry Advancement Support Helps Secure Victory for Collection Industry in FDCPA Case
ACA SearchPoint
Last Word

Collector - September 2016