The CFPB Highlights Alleged Deceptive Debt Collection Practices

In this episode of his "Clearly Conspicuous" podcast series, "The CFPB Highlights Alleged Deceptive Debt Collection Practices," consumer protection attorney Anthony DiResta examines the Consumer Financial Protection Bureau's (CFPB) Summer 2024 Supervisory Highlights. The publication focuses on several areas of concern in consumer financial services, including auto and student loan servicing, debt collection practices, medical payment products and account freezes. In auto loan servicing, the CFPB identifies issues with inadequate notifications for final manual payments in auto-pay systems, while student loan servicers were found to have excessive barriers to assistance and inaccurate information about forbearance programs. Debt collectors were cited for disclosure violations, harassment and inconvenient communications. The report also notes concerns about medical credit cards and account freezes. Mr. DiResta explains that the CFPB's observations align with previously identified issues, particularly with regard to customer service levels and medical debt financing products.