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The Consumer Financial Protection Bureau on Wednesday proposed a postponement of two debt collection rules enacted in the closing days of the Trump administration.
Those rules were broadly about how debt collection agencies can communicate with consumers and make information public.
Kathy Kraninger, the former CFPB chief during the Trump administration, said the measures helped keep consumers informed. Critics argue that some aspects of the plan give companies too much power and allow them to hunt down Americans in debt for payments.
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Both measures – enacted in October and December last year – will take effect on November 30th.
The federal agency proposed a 60-day delay, until January 29, 2022, and said it would give companies additional time to review and enforce debt collection rules.
“In light of the ongoing social disruption caused by the global Covid-19 pandemic, the Bureau proposes extending that effective date,” it said.
The agency’s proposal seeks public comment on whether it should extend the date and whether 60 days is an appropriate deadline.
The consumer agency was founded in the aftermath of the great recession. It is tasked with protecting consumers from financial abuse and predatory practices in common financial services such as credit cards, mortgages and loans.
In February, the agency hinted that it could settle Trump-era mortgage rules that critics believe could promote riskier loans.
It proposed a rule on Monday to avoid foreclosures until 2022.
President Joe Biden nominated Rohit Chopra, the CFPB’s czar for student loans during the Obama administration, to lead the consumer bureau. Dave Uejio, who has been with the agency since 2012, is currently acting director.