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CFPB's Proposed Rules May Apply to Creditors Under UDAAP

  • Written by Anastasia Caton and Chuck Dodge for JD Supra

The CFPB has made clear that it will enforce many provisions of the FDCPA against creditors collecting their own debts under a UDAAP theory. Therefore, even those provisions promulgated under the FDCPA could conceivably be applied to creditors collecting their own debts under a UDAAP theory. The CFPB has provided very little in the way of guidance to creditors on how it will view the Proposals in the UDAAP enforcement context.

Certain vague statements about creditors in the supplementary material to the Proposals have sparked concern within trade groups representing creditors about the extent to which the CFPB might apply any rules it makes under the FDCPA or under its UDAAP authority to creditors collecting their own debts.

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