The CFPB has issued its semi-annual report to Congress. The Report, which covers April through September of 2019, is mandated by Dodd-Frank and was released in conjunction with Director Kraninger’s testimony to the House Financial Services Committee. Here are a few of our key take-aways.
Credit Reporting is a Focus of the Bureau. The Report identifies credit scoring and credit reporting as a source of major concern for consumers. Specifically, the report notes that the reporting of collections and bankruptcies have a significant impact on consumer credit scores and upon consumer lending. The Report also confirms what litigation trends are showing - credit reporting has surpassed debt collection as the most complained of consumer product. In the twelve-month period ending September 30, 2019, credit reporting accounted for 43% of all consumer complaints.
Debt Collection Rule – Mum is the Word. The Report is silent as to when a final debt collection rule will be forthcoming. The Report simply indicates that the proposed rule was published and that the Bureau is reviewing the submitted comments with no indication as to when the final rule will be forthcoming. Keeping in mind that the reporting period covered ended in September, perhaps that is not unusual except for the fact that the Report includes footnoted updates as to other issues addressed in the report. Moreover, debt collection complaints no longer are the most complained of consumer product, having been surpassed by credit reporting. For the year ending September 30, 2019, debt collection only accounted for 24% of all consumer complaints.