Wiley Consumer Protection Download (August 3, 2021) | Wiley Rein LLPAugust 3, 2021
Welcome to Wiley’s update on recent developments and what’s next in consumer protection at the Consumer Financial Protection Bureau (CFPB) and Federal Trade Commission (FTC). In this newsletter, we analyze recent regulatory announcements, recap key enforcement actions, and preview upcoming deadlines and events. We also include links to our articles, blogs, and webinars with more analysis in these areas. We understand that keeping on top of the rapidly evolving regulatory landscape is more important than ever for businesses seeking to offer new and ground-breaking technologies.
CFPB Confirms Effective Date of November 30, 2021 for FDCPA Final Rules. On July 30, the CFPB announced that two final rules issued under the Fair Debt Collection Practices Act will take effect on November 30, 2021. The two rules at issue are the October 2020 Debt Collection Rule, which focuses on the use of communications related to debt collection; and the December 2020 Debt Collection Rule, which clarifies the disclosures that debt collectors must provide to consumers. The CFPB previously issued a proposal in April 2021 that would have extended the effective dates to January 29, 2022 to give parties more time to comply as a result of the COVID-19 pandemic. The CFPB has now determined that such an extension is unnecessary.
CFPB and FHFA Publish Data Detailing Consumer Experiences in Obtaining a Mortgage. On July 29, the CFPB and the Federal Housing Finance Agency (FHFA) published updated data on loan levels collected through the National Survey of Mortgage Originations (NSMO). These surveys collect input from borrowers regarding their experiences during the mortgage application process, their perceptions about the market for mortgages, and future expectations. The newly released data includes information through 2019, which provides an indication of borrowers’ outlooks on the mortgage market directly before the onset of the COVID-19 pandemic. Among other things, the data demonstrates that the percent of survey respondents unconcerned about qualifying for a mortgage during the application process increased slightly from 2018 to 2019 (from 48 to 51%).
FTC Testifies Before House Energy and Commerce Subcommittee on Legislation. On July 28, FTC Chair Lina Khan and Commissioners Noah Phillips, Rohit Chopra, Rebecca Slaughter, and Christine Wilson testified before the House Energy and Commerce Subcommittee on Consumer Protection and Commerce regarding legislation to strengthen the agency’s authority to obtain monetary relief in federal court, among other matters. Chair Khan and the other Commissioners testified that the Supreme Court’s AMG decision, which we covered here, weakens the agency’s ability to prevent anticompetitive conduct and certain corporate mergers, among other things. The FTC Commissioners stated that the agency requires additional resources to address these issues through enforcement proceedings.
CFPB Finds That…