Biden Consumer Watchdog is trying to delay the collection rules from the Trump era
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The Consumer Financial Protection Bureau proposed on Wednesday postponing two collection rules enacted in the final days of the Trump administration.
These rules largely addressed the question of how collection agencies can communicate with and disclose consumers.
Kathy Kraninger, the former CFPB head during the Trump administration, said the measures helped keep consumers informed. Critics argue that some aspects of the plan give too much power to businesses, allowing them to hunt down indebted Americans for payments.
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Both measures, which were enacted in October and December last year, are due to come into force on November 30th.
The federal agency proposed a 60-day delay until January 29, 2022, saying it would give companies additional time to review and enforce collection rules.
“Given the ongoing social disruption caused by the global Covid-19 pandemic, the Bureau proposes to extend this effective date,” it said.
The Agency’s proposal will seek a public comment on whether to extend the date and whether 60 days is appropriate.
The consumer bureau was founded after the great recession. Its job is to protect consumers from financial abuse and predatory practices in popular financial services such as credit cards, mortgages, and loans.
In February, the office signaled it could overturn Trump-era mortgage rules, which critics believe could encourage riskier borrowing.
She proposed a rule on Monday to prevent foreclosures until 2022.
President Joe Biden appointed Rohit Chopra, the CFPB’s tsar for student loans during the Obama administration, to head the consumer bureau. Dave Uejio, who has been with the agency since 2012, is currently Deputy Director.