Debt collector abuse is what drives people to
the doors of bankruptcy lawyers like me.
But, I am still AGAINST debt collector abuse.
CFPB and Debt Collectors
The Consumer Protection Finance Bureau (CPFB) has been around for a few years now, so far overcoming court challenges to the broad array of powers bestowed on it by Congress. They regulate virtually any financial industry or business that comes in contact with consumers.
The main source of consumer complaints, for year, has been, yes, debt collectors.
After evaluating thousands of consumer complaints of debt collector abuse,
Noting that debt collectors trigger more consumer complaints than any financial product or service, the Consumer Financial Protection Bureau unveiled plans Thursday to rein in the most serious abuses.
and evaluating input from other sources, the CFPB has published proposed new rules.
One proposed new rule would require collectors to scrub their files and substantiate the debt before contacting consumers. In addition, collectors would not be allowed to collect on accounts with certain “warning signs,” such as large amounts of missing data or a high dispute rate.
Some other proposals would impose more limits on how often consumers could be contacted, require collectors to explain clearly how a consumer can dispute a debt and require that more specific information about the debt be included in initial collection notices.
The changes would apply to third-party debt collectors, including many debt buyers.
Scrubbing is a great word, for checking data against collections of data.
There are records on everyone who has filed bankruptcy, among numerous of our other activities that are also recorded. The capacity exists to check your information, or mine, against these data bases, to check if we filed bankruptcy, or verify other information.
It is cheap , but, not free, and the debt collection industry opts for free whenever possible. This CFPB rule would impose a cost for not scrubbing.
Will the Proposed CFPB rules decrease Debt Collector Abuse?
That is the question. In my experience, it is difficult even to find which debt collector is abusing my client.
They call from untraceable numbers, use made up names, are out of state (Michigan) if not overseas, and ignore the provisions of the Fair Debt Collection Practices Act more often than not.
So, these bad actors will not care if they are breaking new rules.
Big domestic debt buying, and debt collecting, companies, are too big to hide, and the rules will affect their behavior.
As always, if you are experiencing debt collector abuse, contact me or another qualified consumer attorney.