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The Consumer Financial Protection Bureau proposed a delay on Wednesday following two debt collection rules issued during the Trump administration.
These rules address a broad spectrum of ways in which debt collectors can communicate and disclose information to consumers.
Kathy Kraninger, former CFPB head during the Trump administration, said the measures helped inform consumers. Critics argue that certain aspects of the plan over-empowered the company and allowed them to chase indebted Americans for payments.
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Both measures, issued in October and December last year, are scheduled to take effect on November 30.
The federal agency proposed a 60-day delay until January 29, 2022, saying it would give companies time to review and implement debt collection rules.
“In light of the social disruption caused by the global COVID-19 outbreak, the office is proposing to extend the effective date,” the news agency said.
The agency’s proposal requires public opinion on whether the date should be extended and 60 days for a reasonable period of time.
The Consumer Bureau was created after the Great Recession. It has been tasked with protecting consumers from financial abuse and improper practices in common financial services such as credit cards, mortgages and loans.
In February, the bureau signaled it could defuse Trump-era mortgage rules that critics think could promote more risky borrowing.
Proposed a rule on Monday to prevent foreclosure until 2022.
President Joe Biden named Rohit Chopra, the CFPB’s education loan agency during the Obama administration, to lead the consumer bureau Dave Uejio, who has been with the agency since 2012, is now acting director.