NARCA Alerts Members to Possible CFPB Requests

The National Association of Retail Collection Attorneys (NARCA) sent an alert to its members Thursday warning them of the possibility of requests from the Consumer Financial Protection Bureau (CFPB) for information on their creditor clients.

NARCA’s general counsel noted in the alert that the CFPB has been aggressive in gathering information on and from certain large credit grantors. Part of the information requested from the financial institutions is the identification of “law firm and
non-law firm entities that provide debt collection services.” Because of this, NARCA believes that many in the ARM industry may be receiving requests soon for information, either about their own business practices or on their clients.

The alert, which was prepared and sent by Washington law firm Arent Fox on behalf of NARCA, notes that collection attorneys’ primary concern in the potential requests is maintaining client confidentiality. Until more is known about the CFPB and its legal obligation to maintain confidentiality, NARCA members should err on the side of caution.

Editor’s Note: At the request of NARCA, the link to the actual memo alert, which was posted online by the Association and originally appeared in this story, has been removed. According to the memo: “If you would like additional information about this issue or wish to discuss a communication your firm has received from CFPB, please contact Diane Darrow, Executive Vice President of NARCA at diane@narca.org.”