Bill Enacts the “Fair Debt Buying Practices Act”
September 23, 2013
A new bill, SB 233, enacts the Fair Debt Buying Practices Act to regulate the activities of purchasers of charged-off consumer debt. The bill targets persons or entities that are regularly engaged in the business of purchasing such debt for collection purposes. Banks generally would not be covered by the bill unless they get into the business.
The bill was drafted, under CBA’s guidance, not to apply when a bank acquired another bank or a portfolio of debt that also included past due accounts. See CBA’s Regulatory Compliance Bulletin attached.