CFPB reverses course on key part of debt collection proposal


In a big win for third-party debt collectors, the Consumer Financial Protection Bureau said Thursday that banks and other first-party creditors are responsible for the accuracy of information on consumer debts.

The about-face by Richard Cordray, the CFPB’s director, is a significant change for the bureau’s overhaul of the debt collection industry. Cordray said the CFPB realized the difficulty of requiring that third-parties have accurate information on debts they did not originate.

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