CFPB Agrees to Extend Comment Deadline on Debt Collection Rule

The CFPB has agreed to extend the comment period on its proposed controversial debt collection rule for 30 days, following a request from consumer groups.

Comments now will be due on Sept. 18 on the plan, which covers third-party debt collectors.

Several consumer groups had requested that the CFPB extend the deadline, saying that the complexity of the proposal would make it difficult to fully analyze it.

The agency said it was extending the deadline to “facilitate the ability of commenters to consider the issues raised” in the proposal.

The consumer groups had requested a 60-day delay. The CFPB said it had received another request for a 90-day delay.

The groups said the complexity of the issue and the length of the proposed rule—538 pages–make it difficult to comment on it.

They said that there are not many organizations that represent the interests of people subject to debt collection that have the expertise to analyze the rule. They also said they have been engaged in commenting on proposals from the CFPB and other agencies.

The groups said that there has been little publicity encouraging public comment, adding that they have had to publicize the proposal while, at the same time, analyzing it.

The rules are intended to address allegations that debt collectors harass people who owe money. It limits the number of contacts that collectors may have with borrowers.

However, consumer groups have criticized the plan, saying that a debt collector still could make seven telephone calls a week to a borrower.

The rule does not directly affect credit unions. However, some credit unions hire third-party companies to service their loans.