Breaking News: CFPB Releases Outline of Proposals for Debt Collection Rulemaking

The outline provides the first public glimpse of what the CFPB is thinking as it moves forward in the debt collection rule-making process. In coordination with its field hearing on debt collection being held today in Sacramento, Calif., the Consumer Financial Protection Bureau has released an outline of proposals under consideration for the long-awaited debt collection rule-making. The proposals are a core part of the materials used by the CFPB as part of the small business panel process required by the Small Business Regulatory Enforcement Fairness Act. The outline provides the first public glimpse of what the CFPB is thinking as it moves forward in the debt collection rule-making process. More info here.

Three-Month Debt Collection Complaint Average Continues to Decline

The latest Consumer Financial Protection Bureau's monthly complaint snapshot focused on credit card complaints, which increased from May to June 2016.The three-month average for debt collection complaints declined for the second month in a row, according to the Consumer Financial Protection Bureau’s latest monthly complaint snapshot released on July 27, 2016. The three-month average of debt collection complaints from April to June 2016 declined 3 percent to 7,063, compared to 7,265 in April to June 2015. The average recorded in the May report also declined. The three-month average for debt collection complaints from March to May this year was 7,415, compared to 7,442 this time last year, ACA International previously reported. According to the report, the CFPB received 7,032 debt collection complaints in June. Debt collection represented 29 percent of the approximately 24,500 complaints submitted in June–the same percentage as reported in May. Overall, the CFPB has handled a total of approximately 930,700 complaints as of July 1, 2016, according to the report; the CFPB has received a total of 248,278 complaints on debt collection. More info here.

Consumers’ Credit Market Experiences Improve; Expectations for Future Credit Approval Dip

The Federal Reserve Bank of New York’s latest survey on credit access shows credit card application rates increased over the last several months while rejection rates declined. Consumers’ overall experiences in the credit market, including applications for credit and acceptance rates, improved since February. Application rejection rates for all credit types, except housing-related debt, approached the series low of 19.2 percent reached in June 2015. The per applicant rejection rate for all credit types, including credit cards, auto loans and mortgages, dropped from 20.9 percent in February 2016 to 19.3 percent in June 2016. 

For credit cards, the application rate increased from 28.5 percent in February to 30.6 percent in June, marking the highest result since the Fed started the survey. The rejection rate for credit card applications also declined from 17.3 percent in February to 15 percent in June. More info here.

Healthcare Spending Expected to Increase as Share of Economy

The Affordable Care Act continues to influence health spending growth and consumers’ out-of-pocket medical costs are also increasing.National health spending, including Medicare, medical price growth and prescription drugs, is expected to grow over the next decade, but at a rate lower than the average of the last two decades.The national health spending is projected to increase at an average rate of 5.8 percent per year from 2015-2025. The Affordable Care Act continues to keep overall health spending growth at a modest level and at a lower growth rate than the previous two decades. This progress is occurring while also helping more Americans get coverage, often for the first time. More info here.