Finance debt

Biden’s consumer watchdog seeks to postpone Trump-era debt collection rules

Ting Shen / Bloomberg via Getty Images

The Consumer Financial Protection Bureau offers a postponement Wednesday to two debt collection rules published in the final days of the Trump administration.

These rules widely discussed how debt collectors can communicate with consumers and disclose them.

Kathy Kraninger, former director of CFPB under the Trump administration, said the measures had helped keep consumers informed. Critics argue that aspects of the plan give companies too much power and allow them to harass Americans in debt for payments.

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Both measures – released in October and December last year – are expected to come into force on November 30.

The federal agency has proposed a 60-day deadline, until Jan. 29, 2022, saying it would give businesses more time to review and implement debt collection rules.

“In light of the ongoing societal disruption caused by the global Covid-19 pandemic, the Bureau is proposing to extend this effective date,” he said.

The agency’s proposal seeks public comment on whether to extend the date and whether 60 days is an appropriate length of time.

The consumer office was created in the aftermath of the Great Recession. It is responsible for protecting consumers from financial abuse and predatory practices in mainstream financial services such as credit cards, mortgages and loans.

In February, the office reported that he can relax Trump-era mortgage rules that critics say could encourage riskier borrowing.

He proposed a rule on Monday for prevent foreclosures until 2022.

President Joe Biden appointed Rohit Chopra, CFPB The student loans czar of the Obama administration, to lead the consumer office. Dave uejio, who has worked for the agency since 2012, is currently acting director.