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Federal Register / Vol. 86, No. 128 / Thursday, July 8, 2021 / Notices
consumer used a model form to mail a written statement to a debt collector stating that the debt was the result of identity theft, requesting that the collector cease further communication, and requesting that the collector provide confirmation along with information concerning the disputed account. After receiving this form, the collector continued attempts to collect the debt from the consumer in violation of FDCPA section 805c. These attempts were not efforts to respond to the consumers request for information about the identity theft claim. In response to these findings, the collector is improving board and management oversight and monitoring.

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2.3.4 Harassment Regarding Inability To Pay Section 806 of the FDCPA prohibits a debt collector from engaging in any conduct the natural consequence of which is to harass, oppress, or abuse any person in connection with the collection of a debt.27 Examiners found when consumers stated they were unable to make or complete payment arrangements, debt collectors emphasized two or more times to each of the consumers that the collector would place a note in the account system stating that the consumer was refusing to make a payment. The natural consequence of these inaccurate statements was to harass or oppress the consumers, in violation of section 806.
In response to these finding, the collectors are improving their training and monitoring.
2.3.5 Communicating, and Threatening To Communicate, False Credit Information Section 807 of the FDCPA prohibits a debt collector from using any false, deceptive, or misleading representation or means in connection with the collection of any debt.28 Section 8078
specifically prohibits communicating or threatening to communicate credit information which is known or which should be known to be false, including the failure to communicate that a disputed debt is disputed.29 Examiners found that debt collectors knew or should have known that debts were disputed, resulted from identity theft, and were not owed by the relevant consumers. Nonetheless, in these circumstances, the collectors threatened to report to CRCs that the consumer owed the debt if it was not paid. The collectors then reported the debt to 27 15

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29 15 U.S.C. 1692e8.
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CRCs and failed to report that the consumer disputed the debt. This course of action violated section 8078
of the FDCPA. In response to these finding, the collectors are improving their training.
2.3.6 False Representations or Deceptive Means of Collection Section 80710 of the FDCPA
prohibits a debt collector from using any false, deceptive, or misleading representation or means in connection with the collection of any debt or obtain information concerning a consumer.30
Examiners found that several debt collectors falsely represented to consumers the impact that paying off their debts would have on their credit profiles, in violation of section 80710.31 For example, one debt collector told a consumer the debt would no longer impact her credit profile once paid, which was false.
Another debt collector told a consumer that making a payment would help to fix the consumers credit. In response to this finding, the collectors are improving various aspects of their CMS.
2.3.7 Incorrect Systemic Implementation of State Interest Rate Cap Section 808 of the FDCPA states that a debt collector may not use unfair or unconscionable means to collect or attempt to collect any debt.32 Section 8081 specifically designates the collection of any amount . . . unless such amount is expressly authorized by the agreement creating the debt or permitted by law as an unfair practice.33 Examiners found that debt collectors entered inaccurate information regarding State interest rate caps into an automated system, resulting in some consumers being overcharged, in violation of section 8081. In response to these findings, the collectors remediated impacted consumers and are improving their training and monitoring.
2.3.8 Unlawful Initiation of Administrative Wage Garnishment During Consolidation Process Section 808 of the FDCPA states that a debt collector may not use unfair or unconscionable means to collect or attempt to collect any debt.34 Examiners found that debt collectors sent administrative wage garnishment orders U.S.C. 1692e.
CFPB Bulletin 201308, Representations Regarding Effect of Debt Payments on Credit Reports and Scores July 10, 2013.
32 15 U.S.C. 1692f.
33 15 U.S.C. 1692f1.
34 15 U.S.C. 1692f.

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to consumers employers by mistake despite having received completed applications from the consumers to consolidate the debt, which should have stopped the wage garnishment process based on standard procedures, in violation of section 808. In response to these findings, the collectors are improving their training and monitoring.
2.3.9 Failure To Send Complete Validation Notices Section 809a of the FDCPA requires a debt collector to send a notice containing certain information commonly called a validation notice to the consumer within five days after the initial communication with the consumer, with certain exceptions.35
Examiners found that debt collectors violated section 809a by sending validation notices that lacked some of the required information. Examiners found that the issue resulted from template changes that had not been reviewed by compliance personnel. In response to these findings, the collectors are improving their board and management oversight of new letter templates.
2.4 Deposits The CFPB continues its examinations of financial institutions for compliance with Regulation E,36 which implements the Electronic Fund Transfer Act EFTA.37 The CFPB also examines for compliance with other relevant statutes and regulations, including Regulation DD,38 which implements the Truth in Savings Act,39 and the Dodd-Frank Acts prohibition on unfair, deceptive, or abusive acts or practices UDAAPs.40
2.4.1 Regulation E Error Resolution Violations EFTA establishes a legal framework for the offering and use of electronic fund transfer EFT services. One of the primary objectives of the EFTA and its implementing regulation, Regulation E, is to protect consumers engaging in EFTs.
Supervision continues to find violations of EFTA and Regulation E
that it previously discussed in the Fall 2014, Summer 2017, and Summer 2020
editions of Supervisory Highlights, respectively. These violations include:
Requiring written confirmation of an oral notice of error before investigating;

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U.S.C. 1692ga.
CFR part 1005 et seq.
37 15 U.S.C. 1693 et seq.
38 12 CFR part 1030 et seq.
39 12 U.S.C. 4301 et seq.
40 12 U.S.C. 5531, 5536.
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