In the new year, the CFPB will be
regulating the debt collection industry. This represents the first time that one federal agency will have the
responsiblity of regulating the debt collection industry.
The new rules issued by the agency also give the CFPB the authority to
regulate debt collection law firms. This has
caused quite a stir in the creditor's bar as the debt collection attorneys argue that
this will jeoparidize the attorney-client privilege. Given that regulating
the practice of law has historically been the job of the several states,
it is interesting to see if this portion of the CFPB's new rules will
survive a legal challenge.