Collector - January 2018 - 19
By Anne Rosso May and ACA Staff
ow that 2017 is behind us, it's time to look ahead into a new year.
We talked to a number of collection industry professionals about
what we can expect to see in the months ahead, and these are the
need-to-know trends and issues on their radar.
THE CFPB ROLLERCOASTER
The issues that will
be changing the
credit and collection
industry, and what
you need to know in
the coming year.
Expect to hear a lot from the Consumer Financial Protection Bureau in the
coming months, but first here's some good news to start your year off.
In late October 2017, the credit and collection industry enjoyed an exciting
victory when U.S. Senate Republicans overturned the CFPB's rule to ban
class-action waivers in arbitration agreements in contracts for consumer
financial products. President Donald Trump signed the legislation Nov. 1.
This important win for the industry came in part thanks to ACA's vocal
opposition to the rule. ACA submitted a comment letter last year explaining
the important role class-action waivers played in offering legitimate debt
collectors a way to more easily defeat inappropriate class-action lawsuits.
ACA also joined 28 other industry associations and organizations in a letter
to the CFPB requesting that it withdraw the rule.
A lot has changed since Richard Cordray's Nov. 24 departure from the
CFPB. Days after Cordray cleared out his office, his former Chief of Staff
Leandra English and President Donald Trump's interim pick for the job,
Mick Mulvaney, showed up to lead the agency. This prompted a lawsuit
and quick decision favoring Trump's man. , though English filed an
amended complaint and a motion for a preliminary injunction in the U.S.
District Court for the District of Columbia to reverse the district court's
With Mulvaney at the helm on an interim basis, the next question is:
Who will be the permanent CFPB director? At press time we were still
waiting for an answer.
"ACA International looks forward to working with a new director of the
CFPB and demonstrating the important role that debt collectors play in
the financial services market," said ACA International President Rick Perr.
"We are committed to collaborating with the CFPB's future leadership to
ensure any new policies and regulations impacting the credit and collection
industry are evidence-based, well-reasoned and fair."
The ACA-supported case PHH Corp. v. CFPB, which questions the
constitutionality of the CFPB, is still being considered by the U.S. Court of
Appeals for the District of Columbia Circuit, but ACA is hopeful a decision
will come in the first part of 2018.