Published On: November 6, 2013
Debt collectors face new rules under proposal from Consumer Financial Protection Bureau
(By Danielle Douglas, Published: November 5)
According to the Washington Post:
the government is preparing restrictions on debt collectors, a loosely regulated industry under increasing scrutiny over complaints of abusive tactics. On Wednesday, the Consumer Financial Protection Bureau is slated to issue a notice of proposed rulemaking to modernize the legal framework governing debt collection.
The most-common complaints about debt collectors involve harassing phone calls, lack of verification of the debt and people becoming aware of a collection account only through their credit report.
Think about the information you are giving this stranger: all your financial information, your children’s names, bank accounts and your social security number. You do this without the slightest guarantee that the information will be kept safe.
The government watchdog is seeking public and business comment before formally proposing the rules, which are expected to be finalized by next year.The bureau is asking Americans whether creditors and collection agencies are providing accurate information about their outstanding debts. It also wants to know whether people are receiving threatening calls at all hours of the night or being dragged into court for money they do not owe.
“Collection of consumer debts serves an important role in the proper functioning of consumer credit markets,” CFPB Director Richard Cordray said Tuesday on a call with reporters. “But certain debt collection practices have long been a source of frustration for many consumers.”
Cordray noted that since the bureau began accepting debt collection complaints in July, it has received about 5,000 consumer grievances. The most-common complaints involve harassing phone calls, lack of verification of the debt and people becoming aware of a collection account only through their credit report.
We have several videos on our web site. Below are a few that might be of interest:
- “Why I Offer Free Legal Advice.”
- “Meet Ms. Drain and Suggestions on How to Hire an Attorney”
This problem is more than 20 years in the making. The last major change in the debt collection industry was in 1977. Congress enactment of the Fair Debt Collection Practices Act, a federal law to protect consumers from abusive tactics. This statute does not address the industry’s use of the Internet, auto-dialers or social media. Debt collectors know that they can ignore the law. They use abusive language, threaten to take actions which are prohibited by law and call at times that they know is illegal. This type of harassment has got to stop.
Will the proposed changes happen? Only if consumers report the abuses. Speak up and make yourself heard.
About the Author: Diane Drain
Diane is a well respected Arizona bankruptcy and foreclosure attorney. As a retired law professor, she believes in offering everyone, not just her clients, advice about bankruptcy and Arizona foreclosure laws. Diane is also a mentor to hundreds of Arizona attorneys.
*Important Note from Diane: Everything on this web site is offered for educational purposes only and not intended to provide legal advice, nor create an attorney client relationship between you, me, or the author of any article. Information in this web site should not be used as a substitute for competent legal advice from an attorney familiar with your personal circumstances and licensed to practice law in your state. Make sure to check out their reviews.*
“You folks are the BEST OF THE BEST in Arizona.” M.H.
You and Jay are the best attorneys I have ever had or needed and thank God for the Honorable Robert Gottsfield in recommending you folks – I would have never made it through the entire process without you and Jay and God Bless you both always and stay in touch as well. You folks are the BEST OF THE BEST in Arizona.
“My only regret is that I didn’t find Diane sooner.” K.H.
I can’t say enough good things about Diane. The way she handled my not typical circumstances was amazing. I was very nervous to start the bankruptcy process but Diane just has a very comforting way of explaining the whole process. My only regret is that I didn’t find Diane sooner. If you find yourself in a financial situation that you can’t correct on your own, please Call Diane Drain as soon as possible.
“Filing for bankruptcy can be a stressful life event” R.A.
Filing for bankruptcy can be a stressful life event, and selecting the right attorney can add to this stress. Diane and Jay were a pleasure to work with, and it is obvious that they are passionate about helping people get their life back on track. I would highly recommend them if you need a bankruptcy attorney.
Published On: July 24, 2022
Want to avoid dishonest debt collectors? Watch this video from FTC’s Consumer Advice By Joseph Ferrari,July 22, 2022 (reprint from FTC, Consumer Alerts) During Military Consumer Month 2022, the FTC [...]
Published On: July 20, 2022
BEWARE OF THE SECRET COSTS OF USING ‘BUY NOW PAY LATER’!! What You May Not Know About These Services Services like “buy now pay later” now account for $100 [...]
Published On: June 13, 2022
Diane Drain received the 2022 Preeminent Award and Gold Client Champion Award from Martindale-Hubbell. The 2022 AV Preeminent award is given to an "elite group of attorneys who have been rated highly by their peers [...]
Published On: October 25, 2021
CFPB Confirms Effective Date for Debt Collection Final Rules (Reprint from CFPB, July 30, 2021) The Consumer Financial Protection Bureau (CFPB) today announced two final rules under the FDCPA will [...]
My intention is to put you back in control of your life
Start with $0 down*. We provide affordable payment plans.