Collector – January 2020 - 21

ACA has urged the CFPB to provide
additional guidance in this area. In
comments in response to the CFPB's
Request for Information regarding
the enforcement process, ACA stated,
"Concerns are widespread about the
bureau's practice of characterizing conduct
as an unfair, deceptive, or abusive act
or practice ('UDAAP') without prior
notice, and then holding other businesses
accountable under this retroactive
interpretation of legally required or
proscribed behavior."
In an October 2019 hearing, U.S. Sen. Pat
Toomey, R-Pennsylvania, asked Kraninger
if the bureau plans to define "abusive" in
UDAAP.
She replied: "There will be news on that
in the not too distant future."
In the meantime, DiResta, for one,
doesn't think the lack of clarity on this
issue should necessarily keep ACA
members up at night.
"I think our members have many more
practical items on the front burner they
should be focusing on: TCPA compliance,
for example, and being sure that if the
CFPB comes knocking at their door for
exams or audits or investigations that they
are ready and prepared to address those
challenges. Let the academics worry about
abusiveness. Let our members worry about
the real-world compliance issues that they
confront day to day."

ENFORCEMENT TRENDS
In the CFPB's relatively short life span,
we've seen it work though several
personality shifts. There was Cordray's
aggressive focus on regulation by
enforcement and then former acting
director Mick Mulvaney's decision to put
his foot on the brakes. While Kraninger
may have initially pulled back a bit on
enforcement actions while she figured
out which direction to take the bureau,
make no mistake: right now the CFPB is
squarely focused on consumer protection.
"Investigations are going on, lawsuits
are being brought, rulemaking is taking
place, and audits and exams are taking

COLLECTOR 01.20

"If you do get an investigative request, you'll
want to find out early on what your exposure is
so you can react accordingly."

place," DiResta said. "It's operating as an
agency that all companies in the financial
services industry need to pay attention to.
I'm finding from my personal experience
in defending companies and individuals
in investigations and exams that [the
bureau is] as aggressive as they were under
Cordray. So, if there is an attitude out there,
at least in our industry, that we can sit back
and relax because Trump in the White
House, that's a huge mistake."
In fiscal year 2019, the CFPB announced
22 public enforcement actions and settled
six previously filed lawsuits, a marked
increase from the prior year. The actions
cover several ARM markets, including
debt collection, credit reporting and
student loan servicing. By all accounts,
the bureau's current enforcement pace
seems likely to continue in 2020, though
Auchterlonie believes under Kraninger's
watch the CFPB will be a bit more careful
and measured about advancing "creative
theories of liability," and will instead stick
to the more strict construction of statutes
and regulations.
In April 2019, the bureau announced a
move toward transparency regarding Civil
Investigative Demands (CIDs), promising
that CIDs "will provide more information
about the potentially applicable provisions
of law that may have been violated" as well
as "specify the business activities subject to
the bureau's authority."
Many of the bureau's investigations
blossom from consumer complaints, which
is even more reason to build a robust
complaint management system in your
company to track and resolve consumer
issues before they escalate.
"Agencies that have put in the time and
the money to build out their compliance
infrastructure will see those efforts pay

off, so if the CFPB does come in to check
something out you'll have those things in
place," Auchterlonie said. "If you do get an
investigative request, you'll want to find
out early on what your exposure is so you
can react accordingly."
Some of the CFPB's investigations can
last years, which is extremely burdensome
on the companies being investigated.
"From what I'm seeing, there really
doesn't seem to be a desire to limit
investigations after a certain period of
time," Auchterlonie said. "I think that will
continue. I'd say what's changed is it used

Deeper Dive:
Consumer
Complaints
What changes are
coming to the CFPB's
Consumer Complaint
Database this year?
ACA Vice President
and Senior Counsel of
Federal Advocacy Leah
Dempsey explains
what you can expect
on p. 46.

21



Collector – January 2020

Table of Contents for the Digital Edition of Collector – January 2020

Upfront
Industry News
Best Practices
FYI
Collection Tips
Radical Redesigns
Four State Legislative Trends to Watch
Calendar
Honor Roll
Education Spotlight
Our International Reach
Tech Times are Changing
Exceptional Programming and Speakers Pay Off
Looking Forward to Monday Morning
Contextualizing Consumer Complaints
Another Look at Written Disputes
ACA SearchPoint
Ad Index
Membership
Last Word
Collector – January 2020 - Cover1
Collector – January 2020 - Cover2
Collector – January 2020 - 1
Collector – January 2020 - 2
Collector – January 2020 - 3
Collector – January 2020 - Upfront
Collector – January 2020 - 5
Collector – January 2020 - Industry News
Collector – January 2020 - 7
Collector – January 2020 - 8
Collector – January 2020 - 9
Collector – January 2020 - 10
Collector – January 2020 - 11
Collector – January 2020 - Best Practices
Collector – January 2020 - 13
Collector – January 2020 - FYI
Collector – January 2020 - 15
Collector – January 2020 - Collection Tips
Collector – January 2020 - 17
Collector – January 2020 - 18
Collector – January 2020 - 19
Collector – January 2020 - 20
Collector – January 2020 - 21
Collector – January 2020 - 22
Collector – January 2020 - 23
Collector – January 2020 - Radical Redesigns
Collector – January 2020 - 25
Collector – January 2020 - 26
Collector – January 2020 - 27
Collector – January 2020 - Four State Legislative Trends to Watch
Collector – January 2020 - 29
Collector – January 2020 - 30
Collector – January 2020 - 31
Collector – January 2020 - Calendar
Collector – January 2020 - Honor Roll
Collector – January 2020 - Education Spotlight
Collector – January 2020 - 35
Collector – January 2020 - Our International Reach
Collector – January 2020 - 37
Collector – January 2020 - Tech Times are Changing
Collector – January 2020 - 39
Collector – January 2020 - 40
Collector – January 2020 - 41
Collector – January 2020 - Exceptional Programming and Speakers Pay Off
Collector – January 2020 - 43
Collector – January 2020 - 44
Collector – January 2020 - Looking Forward to Monday Morning
Collector – January 2020 - Contextualizing Consumer Complaints
Collector – January 2020 - 47
Collector – January 2020 - 48
Collector – January 2020 - 49
Collector – January 2020 - Another Look at Written Disputes
Collector – January 2020 - 51
Collector – January 2020 - ACA SearchPoint
Collector – January 2020 - Ad Index
Collector – January 2020 - Membership
Collector – January 2020 - 55
Collector – January 2020 - Last Word
Collector – January 2020 - Cover3
Collector – January 2020 - Cover4
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