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John C. Redding extensively quoted in Powersports Finance article, “Debt collection proposal may spark tighter vendor oversight”

Powersports Finance

John C. Redding

John C. Redding was extensively quoted on July 10, 2019 in a Powersports Finance article, “Debt collection proposal may spark tighter vendor oversight,” which discussed Consumer Finance Protection Bureau’s (CFPB) proposed revisions to the FDCPA that includes limits on the number of calls debt collectors may place to consumers. The article stated, “While the proposal is geared toward third-party debt collectors, aspects of the rule will affect creditor operations and vendor management. For instance, the rule has multiple requirements around debt-validation notices, essentially telling debt collectors how to draft letters to consumers. The rule states that a collector can assume a consumer receives a letter within five days of mailing. To that end, the collector should provide a fixed date by which the customer can dispute the debt.”

Redding noted, “The problem is that the five-day assumption doesn’t work with state debt collection laws. While the debt validation notice as proposed by the bureau may be deemed acceptable for the FDCPA at the federal level, what do I do about the states that have their own debt collection laws and don’t have that kind of assumption or presumption of receipt within five days? Arguably that letter may not comply with state law.”

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