CFPB Bulletin – Prohibition of UDAAP in the Collection of Consumer Debts

As part of the Dodd-Frank Wall Street Reform and Consumer Protection Act, credit unions are legally required to refrain from committing unfair, deceptive or abusive acts or practices in violation of the Act (UDAAP). The CFPB published a bulletin on July 10 to provide clarity on the impact of UDAAP related to the collection of consumer debts.  The bulletin describes certain acts or practices related to the collection of consumer debt that could constitute as prohibited UDAAPs, depending on facts and circumstances. Below are some examples included in the bulletin:

The CFPB has also published debt collection examination procedures, which is a useful resource for credit unions.

Submissions to Monitor should follow the submission guidelines and may be emailed. Shawn Glinis is the editor of Monitor and can be reached at 800-262-6285, ext. 449. The newsletter of the Michigan Credit Union League is published Monday mornings or Tuesday mornings when Monday is a holiday. There is no Monitor the week after Christmas and the week after the Annual Convention and Exposition. MCUL reserves the right to edit submissions for clarity and space.
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