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The Office of Consumer Financial Protection on Wednesday proposed a delay in two debt collection rules issued during the Trump administration’s declining days.
These rules have generally addressed how debt collectors can communicate with and disclose to consumers.
Kathy Kraninger, the former head of the CFPB during the Trump administration, said the measures helped keep consumers informed. Critics say some aspects of the plan give companies too much power and allow them to pursue American debtors 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 has proposed a 60-day delay until Jan. 29, 2022, saying it will give companies more time to review and implement debt collection rules.
“Given the ongoing societal disruptions caused by the global Covid-19 pandemic, the Bureau is proposing to extend this effective date,” he said.
The Agency’s proposal calls for public comments on whether it should extend the date and whether 60 days is an appropriate period of time.
The consumer bureau was created after the Great Recession. It has the task of protecting consumers from financial abuse and looting practices in ordinary financial services, such as credit cards, mortgages and loans.
In February, the bureau reported that it could roll out Trump-era mortgage rules, which critics believe could promote riskier loans.
He proposed a rule Monday to prevent enforcement by 2022.
President Joe Biden appointed Rohit Chopra, the CFPB’s student loan tsar during the Obama administration, to lead the consumer office. Dave Uejio, who has been with the agency since 2012, currently serves as interim director.