There is a Flashing Light in the Collections Department and it’s called the CFPB!
By Karin Brown-Purtell, CLE
Look up and look around first party debt collectors, there’s a flashing light in the collections department and it’s called the CFPB! Be prepared: Changes are coming and you’re probably not going to like them!
Debt collection affects a significant number of consumers. In November 2013 the Consumer Financial Protection Bureau (CFPB) took the first steps toward considering consumer protection rules for the debt collection industry through the issuance of an ANPR (Advanced Notification of Pending Regulations). Final ruling guidelines are expected by the end of the year.
Passed in 1977, the Fair Debt Collection Practices Act (FDCPA) was intended to eliminate abusive recovery practices arising from the collection of consumer debts. The CFPB was established in 2010 by way of the Dodd–Frank Wall Street Reform and Consumer Protection Act with a mandate to identify dangerous and unfair financial practices, to educate consumers about these practices, and to regulate the financial institutions that perpetuate them. Under the Dodd-Frank Act, the CFPB is the first Federal agency to acquire the authority to issue regulatory changes for debt collection industry under this statute.
Simply put, the CFPB felt that many consumers might be subject to debt collection efforts that raise consumer protection concerns.