Comments needed on CFPB coerced debt proposal
Comments are now being collected by America’s Credit Unions on the CFPB’s proposed rule to expand the definition of “identity theft” under Regulation V to include “without effective consent,” to address coerced debt. Comments are due to America’s Credit Unions by Feb. 21, and to the CFPB by March 7.
This proposal would:
- Require credit unions to adjust their procedures for detecting and handling identity theft cases;
- Force credit unions to have an expanded role in working with consumer reporting agencies to ensure fraudulent information is blocked from the consumer’s credit report; and
- Increase operational risk due to a broader definition of identity theft as credit unions may need to investigate claims of coerced debt more thoroughly to ensure they are legitimate.
