June 09, 2017

Law360 quotes Jonathan Pompan on CFPB move to update debt collectors' communications and disclosures rules

2 min

Venable partner Jonathan Pompan was quoted in a June 9, 2017, Law360 article on an announcement by the Consumer Financial Protection Bureau (CFPB) director that the agency would look at rewriting rules for debt collectors' communications and disclosures with consumers. Given widespread agreement that the rules need to be updated to address communications via cellphone and other electronic methods, the move is not expected to face opposition from Republicans.

According to Pompan, by addressing debt collectors' communications and disclosures before issues like data accuracy, the CFPB is likely to avoid having any new rules invalidated by a Republican Congress through the Congressional Review Act (CRA). "I think the CRA concerns should not be insignificant to the bureau, but what this also signals is the potential for the development of a proposal that ideally takes into account a consensus approach to modernization that could be accepted by all," he said.

"Taking on issues around when a debt collector can call a cellphone and other similar questions might not engender as much of a response from lawmakers, particularly since debt collection firms have been seeking clarifications," Pompan added. "Modernization has been championed by virtually all segments of the industry for many years now and would significantly benefit not just market participants, but consumers."