AFR Statement On CFPB Debt Collection Proposal

Debt CollectionGoumbik / Pixabay

Instead of protecting consumers, the CFPB’s proposed rule on debt collection focuses on helping debt collectors avoid liability for abusive behavior, argues AFR in a statement issued today.

“If you’re one of the millions of Americans who have dealt with constant harassment from debt collectors, you’re going to be dismayed, because the proposed rule expressly authorizes more ways to harass you,” said Linda Jun, senior policy counsel at Americans for Financial Reform.


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The CFPB would allow debt collectors to contact a person an unlimited number of times via email or text in a single day, a longstanding demand of the industry. Collectors could also try to call a person up to 7 times per week per debt. Attempted phone calls would quickly add up for consumers with multiple debts.

Changes to rules around debt collections could have a profound impact on American consumers. According to a 2017 study, roughly one in three Americans with a credit report have a debt in collection noted on their credit files. Debt collection is a leading source of consumer complaints to CFPB and the Federal Trade Commission.

The CFPB plan also creates an entirely new category of communications that are exempted from the rules. Called “limited content messages,” these telephone calls can request that a consumer get in touch with a collector, without giving specific details about a debt.

“In effect, CFPB wants to roll back the existing consumer protections around debt collection by permitting a new kind of communication that threatens to violate consumers’ privacy,” Jun said.

This debt collection proposal is unfortunately only the latest in a series of financial industry-friendly moves to roll back consumer protections by the new leadership of the CFPB.

What do you think about the new debt collection guidelines? Comment below.

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About the Author

Jacob Wolinsky
Jacob Wolinsky is the founder of, a popular value investing and hedge fund focused investment website. Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at) - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver

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