On December 6, Kathy Kraninger was confirmed as the new head of the CFPB. Her appointment relieved the interim director Mulvaney of his duties. Already, she is being urged to take action on debt collection regulations. If the petitioning groups get their way, things could get a lot stricter in the debt collection industry, according to American Banker.
- Two consumer advocacy groups have urged Kraninger to impose stricter limits on collectors
- They are pushing for regulations that would restrict agents to one live conversation per week with a borrower, and up to three attempts per week to reach a consumer by phone
- The CFPB is expected to formally address any updates to the FDCPA in March
- There seems to be a general understanding that the 40-year-old act must be updated to keep pace with technology. Cellphones and texting are much more common now than they were when the act was first published
- The group is also advocating for consumer-driven contact methods
- In conclusion, advocates are seeking to restore the original statutory purpose of the FDCPA in the wake of new methods of debt collection – to protect consumers from debt collection abuses.