Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Business https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Biden’s consumer watchdog seeks delay in Trump-era debt collection rules

Biden’s consumer watchdog seeks delay in Trump-era debt collection rules

Ting Shen / Bloomberg via Getty Images

The Bureau of Financial Protection of Consumers proposed a delay Wednesday in two debt collection rules issued in the last days of the Trump administration.

These rules broadly address the way debt collectors can communicate and disclose information to consumers.

Kathy Craninger, a former CFPB chief during the Trump administration, said the measures helped inform consumers. Critics say some aspects of the plan give companies too much power and allow them to prosecute indebted Americans for payments.

More from Personal Finance:

7;s tax plan could lead to more Roth retirement accounts
Social security beneficiaries received most of the last 1,400 US checks
PPP loan money is likely to expire before the May 31 deadline

Both measures – issued in October and December last year – are due to take effect on November 30th.

The Federal Agency proposed a 60-day delay until January 29, 2022, saying it would give companies extra time to review and enforce debt collection rules.

“In light of the continuing public disruption caused by the global Pavid-19 pandemic, the Bureau proposes to extend this effective date,” it said.

The agency’s proposal seeks public comment on whether the date should be extended and whether 60 days is an appropriate period of time.

The consumer bureau was created after the Great Recession. It aims to protect consumers from financial abuse and predatory practices in general financial services such as credit cards, mortgages and loans.

In February, the bureau signaled that it could repeal Trump-era mortgage rules that critics say could encourage riskier loans.

He proposed a rule on Monday to prevent bans by 2022.

President Joe Biden has nominated Rohit Chopra, the king of CFPB student loans during the Obama administration, as head of the consumer bureau. Dave Wedgio, who has been with the agency since 2012, is currently acting director.

Source link