CFPB Oversight of Practice of Law is Back in the Spotlight

The Practice of Law Technical Clarification Act of 2018 (formerly of 2017) is back on the agenda of the House Committee on Financial Services. This had been on the list to be addressed in January, but had been postponed. It appeared again today on the schedule for this week.

The law is proposed as an amendment to the Fair Debt Collection Practices Act (FDCPA) to exclude law firms and licensed attorneys who are engaged in activities related to legal proceedings from the definition of a debt collector, to amend the Consumer Financial Protection Act of 2010 to prevent the Bureau of Consumer Financial Protection (CFPB) from exercising supervisory or enforcement authority with respect to attorneys when undertaking certain actions related to legal proceedings, and for other purposes. 

Late last year insideARM published an article addressing this topic, titled Why states should have primary oversight of attorneys’ activities in debt-collection litigation, by Thomas Pahl and Matthew Wilshire. Pahl is the Acting Director of the Bureau of Consumer Protection at the Federal Trade Commission, and Mathew J. Wilshire is a Senior Attorney in the Division of Financial Practices at the FTC.

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