Annual FTC Summary Shows Increased FDCPA Enforcement

The Federal Trade Commission (“FTC”) issued its second annual letter to the Consumer Federal Protection Bureau (“CFPB”) on February 21, 2014. The letter summarizes the FTC’s 2013 enforcement activity regarding debt collection activities. The CFPB was created under the Dodd-Frank Wall Street Reform and Consumer Protection Act, and is required to submit annual reports to Congress on the Fair Debt Collection Practices Act ("FDCPA"). Under Dodd-Frank, the CFPB and the FTC are required to coordinate regulatory efforts and enforcement of the FDCPA. The letter is part of the FTC’s effort to assist the CFPB in preparing its annual report to Congress. According to the FTC’s letter, it has stepped up aggressive enforcement of the FDCPA. The press release included a statement from Jessica Rich, Director the FTC’s Bureau of Consumer Protection. “When it comes to debt collection, the FTC has many tools in its arsenal, including research, enforcement, and consumer education,” she said. “But in the years since the financial crisis hit, we have increased our emphasis on law enforcement.”