CFPB Tackles Debt Collection: Issues Bulletins for Collectors, Form Letters for Consumers, Warning for Banks

The Consumer Financial Protection Bureau Wednesday issued guidance on unfair business practices for debt collection agencies and creditors. The release corresponded with the opening of the CFPB’s complaints database to debt collection complaints, a move long anticipated by the industry.

But the surprise of the day came in the form of five form letter templates the CFPB made available to consumers to use in their communications with debt collectors. The Bureau also asserted that it has the power to regulate creditor debt collection in addition to third party companies.

The two bulletins directly address practices the CFPB considers abusive, unfair, and/or illegal.