Three consent decrees issued over the past few months present clear challenges for the debt buying industry, creditors and companies that provide services to them. The first, between the Consumer Financial Protection Bureau and JP Morgan Chase Bank, contained an agreement altering the bank’s debt collection activities. The bank also agreed that any debt sold by it would contain a restriction prohibiting resale by the subsequent purchaser.

Then in September, two more consent decrees were inked with debt buying companies Encore Capital and PRA Group. Like the Chase consent decree, these consent decrees contained agreements to change certain of the companies’ debt collection practices. Similar to the Chase consent decree, they also contained an agreement by the companies not to resell purchased debt.

When read together, the three consent decrees have going forward implications for debt buying companies and those who engage in any activity to collect a debt, regardless of whether they are an originator or debt buying company. The agreements likely contain expectations the CFPB has for mortgage,motor vehicle, student loan and other originators and servicers of consumer debt. 

On Nov. 12 at DBA International’s California Regional Symposium, representatives from PRA Group, Encore Capital and DBA International will share their thoughts on the CFPB supervisory and enforcement processes and provide insight into what others should be looking at right now.

Topics will include:

  • Purchase terms and conditions
  • Data accuracy in both purchases and post-purchase operations
  • Document requirements, pre-litigation
  • Addressing oral disputes
  • Practices for telephone communications and, in particular, calls to cellular phones
  • Civil lawsuits for debt collection
  • Handling outside collectors and debt collection law firms
  • Affidavits used in collection lawsuits
  • Collecting debt potentially subject to an expired limitations period

Representatives from the California Bankers Association and the California Collectors Association will discuss recent developments in California state law impacting originators, purchasers and debt collectors. We’ll also examine new laws in Maine and Illinois impacting debt purchasing and those who provide debt collection services. Finally, we will turn our attention to pending legislation, some of it very significant, and the trends we’ve seen in state legislation over the past few months.

This is a rare opportunity to discuss what is likely a supervision and enforcement framework we expect to see repeated throughout the consumer financial services industry. So please join me in Burbank, Calif. on Nov. 12, from 10 a.m. to 4:30 p.m. Register here.