Debt Collection in the Post Dodd-Frank Enforcement Era

Since passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act¹ (the "Dodd-Frank Act") in 2010, government agencies have paid heightened attention to the activities of entities operating in the debt-collection space. In particular, over the last two years, agencies such as the Consumer Financial Protection Bureau (CFPB), the Federal Trade Commission (FTC), the Department of Justice (DOJ), and the Office of the Comptroller of the Currency (OCC), have made efforts to inform debt-collection entities of the consequences of committing what may be perceived as unfair, deceptive, and abusive acts and practices (UDAAP) or other violations of law in the collection of consumer debts—and have initiated enforcement actions where they have identified alleged violations.

Important lessons can be drawn from these enforcement actions, lessons that should be considered by any party engaged in debt collection—whether a traditional debt collector acting on behalf of another or a creditor collecting its own debt—and applied where appropriate. This article identifies key takeaways from recent government actions and sets out possible options for assuring ongoing compliance with regulatory expectations.

Originally published in The Journal of Taxation and Regulation of Financial Institutions; reprinted with permission.