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).

Rhode Island

Rhode Island ‘Expired Debt Act’ More Than Name Implies

On Jan. 7, the Expired Debt Act (EDA) was introduced in the Rhode Island House of Representatives and referred to the House Committee on Judiciary. Rhode Island has had its own Fair Debt Collection Practices Act (RIFDCPA) that is, for the most part, identical to its federal counterpart. The EDA, however, introduces new definitions and restrictions related to debt collection.

Policies and procedure documents for business

CFPB Issues Compliance Bulletin on FCRA

Last week the Consumer Financial Protection Bureau (CFPB) issued its latest Compliance Bulletin, called “The FCRA’s Requirement that Furnishers Establish and Implement Reasonable Written Policies and Procedures Regarding the Accuracy and Integrity of Information Furnished to all Consumer Reporting Agencies.”  A copy of the Bulletin can be found here. The Bulletin was released in conjunction […]

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House Financial Services Committee Offers a Model on Assessing Disparate Impact via Report

The Report examined internal CFPB documents relating to the December 2013 consent order against the auto finance company Ally Financial Inc. and its subsidiary Ally Bank. The Report stated the CFPB purposefully chose to distribute the $80 million dollars in Ally Bank settlement funds “without verifying that recipients [were] eligible to receive the money.”