CFPB Leader Calls Debt Collector Examinations Preventive Rather than Reactive

Late last month, Peggy Twohig, Team Lead, Nonbank Supervision, Office of Supervision and Enforcement – Consumer Financial Protection Bureau, spoke to a group of over 140 senior leaders of large market participants in the debt collection industry at a regulatory Summit hosted by insideARM.com in Washington, D.C.

Among her remarks, she described her role, and her perspective on the CFPB’s intentions for the supervision program. She stressed that there is a focus on consistency, and that that they are looking at collections holistically, beginning with the process of issuing credit, and what happens during first party collection efforts. She noted that as a part of this approach, the Bureau has already been addressing debt collection issues at banks, including how they interact with their third party debt collection agency network.

Peggy Twohig addresses debt collection leaders at insideARM’s ARM Regulatory Summit

Twohig briefly but enthusiastically acknowledged that the Bureau understands the professional debt collection industry is critical to the functioning of our credit economy, and she said that she views her position as helping those who want to follow the rules.

She also described supervisory activities by the CFPB as preventive rather than reactive — sort of like the fire marshall coming to ensure there are batteries in the smoke alarms, rather than waiting until there is a fire.

Listen to an excerpt of Peggy Twohig’s February 27, 2013 remarks below:

CFPB Remarks at ARM Regulatory Summit