It’s been a busy few weeks for the National Association of Credit Services Organizations (NACSO) in Washington as the soon to be up and running Consumer Financial Protection Bureau (CFPB) issued for public comment a slew of regulations that will come under the CFPB’s watch on July 21st.
While the Federal Trade Commission (FTC) retains jurisdiction of the regulatory enforcement of the Credit Repair Organizations Act (CROA), the CFPB will have shared enforcement authority in many areas and is likely to be active such as mortgage relief services, credit bureaus, identity theft, and regulating non-financial institution products and services.
“We welcome consumer protections that protect America’s consumers’ right to seek assistance from professionals when the credit bureaus are not on the job in updating and correcting errors. Consumers have the right to accurate credit reports,” said NACSO Board Member Dominic Campasano. “We work for the consumers. NACSO looks forward to ongoing dialogue with the FTC and CFPB, as well as Congress in the days ahead.”
According to the list, published this week, the CFPB will take over enforcement of 47 different consumer regulations from seven regulators, including rules relating to Home Mortgage Disclosure, Truth In Lending, Fair Credit Reporting and Privacy of Consumer Financial Information.
In recent days, NACSO representatives have met with several House and Senate members, Republican and Democrat including leadership, regarding the importance of restoring consumer credit worthiness in today’s economy. A number of consumer groups such as the Hispanic Alliance for Prosperity Institute and Congress of Racial Equality, have stepped up to say they support NACSO and legitimate credit repair services, and encouraged regulators to realize the demand and need for services.
A recent New York Times article detailed alleged “VIP lists” kept by the big-three credit bureaus in expediting assistance on errors for an elite crowd caught the eye of Congress. “We have met with several members in recent days on both sides of the aisle who are interested in the impact of errors and vital nature of accuracy in consumer credit reports. They get it. These members of Congress care about their constituent’s access to affordable credit, and are not focused on what’s best for the credit bureau regime.”
Also what lends significant value to NACSO’s interpretation of the Credit Repair Organizations Act is a recent opinion for a case in the Northern District of California, US District Judge Charles Breyer opined an interpretation that applies CROA as written, as opposed to overreaching and creating new law.
NACSO has actively advocated legal compliance, consumer, and industry education, ethical practices, and consumer fairness. Campasano adds, “”We want to ensure that the regulatory environment doesn’t threaten to eradicate legitimate credit repair companies and expose consumers to the dishonest, poorly organized, and unlawful credit repair scams that will fill the void.”
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