There are some groups of companies that numerous individuals have been waiting for the CFPB to get in order. Perhaps the leading one would be debt collection companies, which have been issued a number of tips by the Consumer Financial Protection Bureau.
Consumer Financial Protection Bureau tells debt collection companies a new sheriff is in town
There is a lot of hatred in the debt collectors business, which they most likely deserve considering some of the things collectors do. Though there are good debt collectors out there, there are a lot of bad apples that give the market a bad name.
In 2011, over 180,000 grievances were made about debt collectors to the Federal Trade Commission, according to the New York Times. That is a lot of growth from 2000 when it was only 13,950 complaints. Most of the bad activity is certainly with smaller firms since only 21 percent of complaints to the FTC were from the top 100 debt collectors.
The Consumer Financial Protection Bureau has finally publicized that it is prepared to bring in the industry's behavior, which many people have been waiting for.
Getting rules in Jan
People should always pay back their personal loans and other debts that they take out willingly, but abuse is never the answer to anything. That is why debt collectors are expected to be honest and civil with those they collect from. Starting January 2, 2013, the CFPB will actually be checking to make sure debt collectors are in line.
All non-bank financial institutions are under control of the Consumer Financial Protection Bureau as the Dodd-Frank Act requires.
The only issue with it all is that small businesses are off the hook since only corporations with $10 million or more in annual receipts are being viewed, according to the Washington Post. The New York Times points out that it is still going to be $12.2 billion a year watched and about 63 percent of business, which is great. However, only 175 of the 4,500 debt collectors are represented in that number.
Reprieve or token gesture
According to Forbes, about 5 in every one million people complain even though the top 100 companies only accounted for 21 percent of grievances. There are not that many grievances in spite of the bad news of debt collection companies.
The largest firms are the largest creditors, and it makes sense that they would be more careful with their practices. It may not be worth producing rules just for them since the small businesses are making the mistakes. Still, the CFPB is working on guidelines to regulate the industry better.
Consumer Financial Protection Bureau tells debt collection companies a new sheriff is in town
There is a lot of hatred in the debt collectors business, which they most likely deserve considering some of the things collectors do. Though there are good debt collectors out there, there are a lot of bad apples that give the market a bad name.
In 2011, over 180,000 grievances were made about debt collectors to the Federal Trade Commission, according to the New York Times. That is a lot of growth from 2000 when it was only 13,950 complaints. Most of the bad activity is certainly with smaller firms since only 21 percent of complaints to the FTC were from the top 100 debt collectors.
The Consumer Financial Protection Bureau has finally publicized that it is prepared to bring in the industry's behavior, which many people have been waiting for.
Getting rules in Jan
People should always pay back their personal loans and other debts that they take out willingly, but abuse is never the answer to anything. That is why debt collectors are expected to be honest and civil with those they collect from. Starting January 2, 2013, the CFPB will actually be checking to make sure debt collectors are in line.
All non-bank financial institutions are under control of the Consumer Financial Protection Bureau as the Dodd-Frank Act requires.
The only issue with it all is that small businesses are off the hook since only corporations with $10 million or more in annual receipts are being viewed, according to the Washington Post. The New York Times points out that it is still going to be $12.2 billion a year watched and about 63 percent of business, which is great. However, only 175 of the 4,500 debt collectors are represented in that number.
Reprieve or token gesture
According to Forbes, about 5 in every one million people complain even though the top 100 companies only accounted for 21 percent of grievances. There are not that many grievances in spite of the bad news of debt collection companies.
The largest firms are the largest creditors, and it makes sense that they would be more careful with their practices. It may not be worth producing rules just for them since the small businesses are making the mistakes. Still, the CFPB is working on guidelines to regulate the industry better.
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