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The Consumer Financial Protection Bureau on Wednesday proposed postponing two debt collection rules issued in the waning days of the Trump administration.
These rules paid close attention to how debt collectors can communicate with consumers and make them public.
Kathy Kraninger, the former CFPB chief during the Trump administration, said the measures help keep consumers informed. Critics argue that some aspects of the plan may give companies too much and enable them to pay guilty Americans for payments.
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Both measures – which were issued in October and December last year – are expected to take effect on November 30.
On January 29, 2022, the federal agency proposed a 60-day delay, saying it would give businesses extra time to review and enforce debt collection rules.
“In view of the ongoing societal disruption caused by the global Covid-19 pandemic, the Bureau proposes to extend the effective date,” he said.
The agency’s proposal seeks public comment on whether it should extend the date and whether it is 60 days.
The Consumer Bureau was established in the wake of the Great Recession. It is the task of protecting consumers from financial abuse and predatory practices in general financial services such as credit cards, mortgages and loans.
In February, the bureau indicated it could derail Trump-era mortgage rules that critics say could boost riskier lending.
A rule is proposed on Monday to prevent prosecutions until 2022.
President Joe Biden has nominated Rohit Chopra, the CFPB’s student loan tsar during the Obama administration, to head the Consumer Agency. Dave Uejio, who has been with the agency since 2012, currently serves as acting director.