By Mike Bevel – insideARM.com – August 23, 2011
Gina McNaughton
It appears that Rep. Steve Cohen (D-TN) had the best of intentions when he presented H.R. 2361: Fair Debt Collection Improvement Act, probably at the behest of a few irate constituents; however, had his Staff researched this further they would have uncovered that we already have case law regarding lawsuits on time-barred debt. The additional highlights of his Bill, notably the statute of limitations disclosures, would be in my opinion, a band-aid approach to updating the FDCPA.
The good news, this bill was introduced 6/24/2011, late enough in the year that its passage in the 112th Congress is doubtful. In addition, Rep. Cohen only has 4 other Co-Sponsors: Jesse Jackson (D-IL2), Barbara Lee (D-CA9), James McDermott (D-WA7) and Gregory Meeks (D-NY6). Lastly no companion bill in the Senate.
I am frequently asked if I think the FDCPA will be updated anytime soon. My response is, “We all know it is long overdue, it’s a matter of who wants to roll up their sleeves and get the job done, and done right.” The CFPB being the new kid on the block would have a huge feather in its cap if it could achieve this. I do not believe that they, nor the FTC have the dedicated resources at this time to accomplish such a monumental task, as overhauling the FDCPA. While I do believe that Debt Collectors are on the CFPB’s radar, other financial sectors are a larger priority at this time.
Gina McNaughton, Partner
The McNaughton Group