The CFPB Thursday presented its annual report to Congress on the administration of the FDCPA in 2013. While 2013 was the most active year of debt collection regulation ever, the report focuses heavily on an analysis of debt collection complaints the agency has received since July 2013.
CFPB Deputy Director Steve Antonakes yesterday discussed debt collection rulemaking noting that his agency is particularly concerned that “the accuracy of account information degrades as it is passed on from the original creditor to debt collection firms or debt buyers.”
Most lawsuits claiming violations of the Fair Debt Collection Practices Act (FDCPA) are resolved without a court ruling on the merits. Further, debt collectors win a surprising number of these out-of-court resolutions, obtaining dismissals of the cases without paying anything to settle.
U.S. News and World Report released its 2014 list of the 100 Best Jobs in America, and both debt collectors and compliance officers made the list. Debt collection was listed as the 57th best job to have, while compliance officers came in at number 54. What’s more, when looking at the top jobs to have in business, compliance officers made the top 10. Collectors came in just behind at number 11.
Last week the Seventh Circuit Court of Appeals issued its opinion in the consolidated appeals of McMahon v. LVNV Funding and Delgado v. Capital Management Services concerning the collection of time-barred debt without the threat of litigation. The result is not good for the credit and collections industry, principally because it further confuses application of the FDCPA across the nation.
At the request of the Federal Trade Commission, a U.S. district court halted a debt collection operation that the agency charged with violating the Federal Trade Commission Act and the Fair Debt Collection Practices Act (FDCPA) by misrepresenting that they were with the government, falsely accusing consumers of committing check fraud, and then threatening consumers with arrest.
It’s been nearly two weeks since the CFPB closed the comment period on its Advance Notice of Proposed Rulemaking for the debt collection industry. There are more than 1,600 comments. We looked through the official responses from industry and consumer groups and here’s what we found.
A new financial watchdog is set to open for business in the United Kingdom on April 1. The agency announced today that a review of the debt collection practices of payday lenders will begin on day one. The group has rulemaking and enforcement powers similar to the CFPB in the U.S. and will be very active in the years to come.
Since July 2013, the CFPB has been the main federal agency tasked with accepting, compiling, and resolving consumer complaints about debt collection. But the FTC still collects those complaints through a variety of other sources. According to FTC data on consumer complaints, the share of debt collection complaints originating in a particular smartphone app has risen dramatically.
The Consumer Financial Protection Bureau Friday issued a public notice and request for comment over a plan to mail surveys to consumers “to learn about their experiences interacting with the debt collection industry.” The CFPB plans to use the survey data to inform its rulemaking process for debt collection, but the timeframe of the survey may push back any new rules.