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).


Former Regulator Accuses CFPB of Targeting the Biggest Companies and Imposing “The Maximum Fines They Can Afford to Pay”

The Weekly Standard has just published an article written by attorney and former regulator Ronald L. Rubin that you will want to read. In the post, Rubin shares his insider experience as a former enforcement attorney with the CFPB, leading one of the Bureau’s first two debt collection investigations.


President of FMA Alliance Shares Experience at Debt Collection SBREFA Hearing

FMA Alliance was honored to be selected to participate last Thursday on the CFPB’s historic Small Business Review  Panel (SBREFA) for debt collection rulemaking in Washington D.C.  I represented FMA Alliance, along with 19 other Small Entity Representatives (SERs), to provide advice, input, and recommendations regarding the outline of proposed debt collection rules.  The CFPB […]


Creditor Rights Law Firms Well-Represented on CFPB’s Small Business Review Panel

As the only law firm small entity representative (SER) to participate in a second SBREFA panel, I came to the process with a certain level of comfort, but with preconceived notions of how the process would unfold. While the process was similar, the overall feel of the panel that convened on August 25, 2016 to engage the CFPB on Debt Collector and Debt Buyer Rulemaking was very different.


Massachusetts Jumps into the Active Debt Collection Regulation Pool

The Massachusetts Division of Banks and the Massachusetts Office of the Attorney General have scheduled a meeting to seek input on the current state of debt collection and debt collection regulation within the State. They are considering whether changes may be warranted. This announcement comes, literally, at the same time the CFPB holds its debt collection SBREFA hearing in Washington, D.C.

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Consumer Relations Consortium Welcomes New Members; Continues Discussions with Consumers

ROCKVILLE, Md. — The Consumer Relations Consortium (CRC) announced today that Coast Professional, State Collection Service, Windham Professionals, Afni, and Radius Global Solutions, have recently joined as new members. The CRC is a membership group for “larger market participants” in the debt collection industry (defined as those firms with $10M or more in annual revenue from collection […]


The “Least Sophisticated Debtor” Is Getting More Sophisticated, And Has An Improved Memory Too

When collectors get sued in an FDCPA action, they face a steep uphill battle. Courts apply the very pro-consumer “least sophisticated debtor” standard when evaluating a collector’s communications, and most violations of the Act are “strict liability.” However, courts have gradually been demanding more and have rejected suits based on hyper-technicalities.