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NACM Submits Comment to CFPB on Debt Collection, Credit Reporting Proposal

NACM submitted a comment this week on a proposal put forth by the Consumer Financial Protection Bureau (CFPB) pertaining to debt collection and consumer credit reporting.

The CFPB was given authority by the Dodd-Frank Financial Reform Act of 2010 to regulate non-bank "larger participants" that conduct business in several different sectors. This most recent proposal aims to define what constitutes a "larger participant" in the consumer debt collection and consumer credit reporting industries.

While NACM represents the interests of commercial, rather than consumer, creditors and credit professionals, the reality is that lawmakers and regulators frequently fail to distinguish between commercial credit activity and its consumer counterpart. "Congress and the federal government have repeatedly failed to make the distinction between these activities," said NACM in its comment. "Despite the vast differences between the two, commercial credit activities are often swept in with consumer credit activities, or overlooked altogether."

"Neither option is acceptable," said NACM. "Either trade creditors are forced to comply with costly regulations that are designed to regulate activity that is fundamentally different than their own, or they're forced to wonder whether or not they're included within the reach of any particular bill or regulation, leading many to consult the often expensive counsel of a lawyer."

NACM has therefore made educating lawmakers and rulemaking agencies part of its mission, and sought to do so with this submitted comment. Furthermore, many of NACM's affiliates offer products and services similar to those that the CFPB now seeks to regulate, only in a commercial, rather than consumer form. As limited as the bureau's proposal might be, NACM submitted the comment to pro-actively prevent the creation of rules and regulations that might inadvertently jeopardize the exchange of business credit information and availability of commercial debt collection services.

A full copy of the letter can be found here.

For more information on NACM's advocacy efforts, visit our advocacy page. If you have any comments or questions, please contact Jacob Barron, CICP at

Jacob Barron, CICP, NACM staff writer