Collection Laws and Regulations Feed Link

Collection Laws and Regulations

Debt collectors are regulated by the FTC on the federal level. At the state level, attorneys general are typically responsible for enforcing state and federal laws. A few local governments also separately regulate debt collectors.

The laws that govern the ARM industry are civil, meaning that liability is almost always monetary. So a state’s attorney general will not file criminal charges against a debt collector accused of violating the law, rather, he/she will sue for damages. Collection laws include federal and state statutes that govern the proper operation of companies and personnel that work in the debt collection industry. The most comprehensive collection law is the Fair Debt Collection Practices Act (FDCPA). Other federal laws that collectors must follow include the Fair Credit Reporting Act (FCRA), the Telephone Consumer Protection Act (TCPA) and the data security requirements of the Gramm–Leach–Bliley Act (GLBA).

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ARM Firms Should Not Be Deceived by TCPA Victories

Debt collectors breathed a collective sigh of relief after the Eleventh Circuit reversed a district court ruling in the Mais case. Coupled with the FCC’s seemingly business-friendly declaratory rulings of GroupMe and Cargo Airline Association, matters appear to be on the upswing for creditor representatives with regard to the TCPA. But don’t be deceived: the relief brought by the positive developments must be tempered by the amicus curiae brief filed by the FCC in a case involving a collector.

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ACA Submits Comments Opposing CFPB’s Request to Collect Data Under Streamlined Process

In an effort to ensure the Consumer Financial Protection Bureau does not skirt its important obligations under the Paperwork Reduction Act, ACA International filed comments objecting to the bureau’s request to obtain special approval, called generic clearance, to use a streamlined procedure that would allow it to gather certain data for up to three years without having to go through the normal notice and comment process.