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The Office of Consumer Financial Protection on Tuesday proposed a delay to two debt collection rules issued in the fall days of the Trump administration.
These rules generally dealt with how debt collectors can communicate and make disclosures to consumers.
Kathy Kraninger, the former head of the CFPB during the Trump administration, said the measures helped keep consumers informed. Critics argue that some aspects of the plan give companies too much power and allow them to pursue payments to Americans in debt.
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The two measures, issued in October and December last year, are expected to enter into force on 30 November.
The federal agency proposed a 60-day delay, until Jan. 29, 2022, saying it would give companies extra time to review and enforce debt collection rules.
“In light of the continuing social disruption caused by the global Covid-19 pandemic, the Bureau proposes to extend this effective date,” he said.
The agency’s proposal seeks public comment on whether it should extend the date and whether 60 days is an appropriate time period.
The consumer office was created after the Great Recession. It is tasked with protecting consumers from financial abuse and predatory practices in common financial services, such as credit cards, mortgages, and loans.
In February, the office noted that it could roll out Trump-era mortgage rules, which critics believe could promote riskier debt.
He proposed a rule Monday to prevent foreclosures until 2022.
President Joe Biden appointed Rohit Chopra, the CFPB’s student loan tsar during the Obama administration, to head the consumer office. Dave Uejio, who has worked at the agency since 2012, currently serves as acting director.