Posted in Financial

Venable LLP | News & Insights | Publications | Newsletters | CFPB

Two recent Consumer Financial Protection Bureau (CFPB or Bureau) enforcement actions – CFPB v. Freedom Stores, Inc., and In re DriveTime – suggest that the CFPB is turning its attention to original lender or “first-party” collection practices to collect debt, including those used by retail merchants and other lenders. Although first-party collections are largely exempt from the Fair Debt Collections Practices Act (FDCPA), the CFPB challenged the allegedly unlawful practices in the two actions using its general unfair, deceptive, and abusive practices (UDAAP) authority under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank). We highlight below how the CFPB applied this authority to lenders, and address how these two actions may signal the CFPB’s intentions with respect to first-party collections in its pending debt collection rulemaking.

via Venable LLP | News & Insights | Publications | Newsletters | CFPB.

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