• DYE CULIK PC | Consumer Protection Division

Consumer Protection Bureau To Focus On Unfair Debt-Collection Practices


 In the first bulletin, the CFPB clarifies that statements that are “misleading” are prohibited, so long as even a significant minority of consumers receiving the misleading statement would be misled. This includes statements susceptible to more than one meaning. The result of this is that collectors must not use solicitations or demands with a dual meaning to try to intimidate consumers. This bulletin also summarizes the CFPB’s definitions of “unfair,” “deceptive,” and “abusive.”

 In the second bulletin, the CFPB says that creditors and debt collectors must not mislead consumers about how accounts will be reported on their credit reports. Sometimes, collectors falsely claim that making payments or entering into agreements will positively affect consumers’ credit. This often happens in connection with mortgage loan modifications, credit cards, or third-party debt collectors.

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