NCBA Issues Statement in Response to the CFPB’s Part II: Debt Collection Rules


National Creditors Bar Association (NCBA) issues the following statement after the Consumer Financial Protection Bureau’s (Bureau) Part II of final rulemaking on the implementation of the Fair Debt Collection Procedures Act (FDCPA):

NCBA acknowledges and thanks the Bureau for its ongoing efforts to provide fairness and clarity to consumers, creditors, creditors’ rights attorneys, and the entire credit ecosystem.  We applaud the Bureau for its fair, transparent, and open rulemaking process.  In particular, the inclusion of the Model Letter and safe harbor for all that use that letter is appreciated and provides clarity for both the consumer and our creditors’ rights attorneys.

With regards to time-barred debt, we are pleased that the Bureau did not move forward with the requirement for non-attorneys to make a legal determination regarding the applicable statute of limitations. We believe that this determination falls within the practice of law and should be made solely by attorneys and the judiciary.

NCBA looks forward to further productive dialog with the Bureau.

NCBA Executive Director Liz Terry elaborated, “Consumers benefit from clear, consistent, and accurate information. The Model Letter goes a long way to ensuring consumers receive the information they need and gives clear guidance on the Bureau’s expectations.”

NCBA President Mark Groves added, “We appreciate the CFPB’s earnest attempt to clarify disclosures surrounding time-barred debt. We believe the determination regarding whether or not a legal claim, in this case a consumer debt, is time-barred involves a legal determination made by an attorney. We appreciate that the Bureau’s Rule on time-barred debt does not attempt to force non-attorney debt collectors into making complex legal decisions for which they are not trained nor licensed.”