The Consumer Financial Protection Bureau has proposed a new "Rule 11," in its proposed new rule at 12 CFR 100618(g). Supposedly the new rule is intended to affect debt collectors under the Fair Debt Collection Practices Act (FDCPA).
CFPB's proposed new rule is not authorized by the Fair Debt Collection Practices Act or otherwise. The proposed new Section 100618(g) regulates attorneys and not debt collectors.
The proposed rule provides immunity to debt collection attorneys, which the CFPB is not authorized to do. It does not "prescribe rules with respect to the collection of debts by debt collectors, as defined[.]" The proposed new rule relies on defining "meaningful attorney involvement case law," but that interpretation is up to judges to decide, and not to the CFPB.
Further, the CFPB's proposed new "Rule 11" in new 12 CFR 100618(g) omits relevant and important safeguards on attorney conduct prescribed by Rule 11 for all forms of attorney conduct in litigation of any kind in federal courts.
These are just some of the problems raised by this new "Rule 11."
Download CHALLENGING CFPB PROPOSED RULE 11 NEW CFR 100618(g).08.19.19.
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