The Federal Trade Commission Wednesday issued its annual report on enforcement of the Fair Debt Collection Practices Act in a letter to the Consumer Financial Protection Bureau. The letter noted that the FTC has stepped up its law enforcement actions under the FDCPA as the CFPB takes over most other responsibilities.
insideARM.com today announces the launch of the latest portal page designed to help the ARM industry navigate the current legal and regulatory environment: Collection Complaints Resources.
With debt collection agencies and other ARM firms now required to actively respond to each consumer complaint sent from the CFPB, we felt that a page dedicated to debt collection complaints was sorely needed.
The Federal Trade Commission last week released the 2013 annual report on its Consumer Sentinel complaints collection system. The highlights: identity theft complaints once again topped the list and debt collection complaints increased very slightly to 204,644. But an analysis of CFPB debt collection complaint data shows only a fraction of the FTC’s number.
Most sellers anticipate being on the receiving end of a due diligence process. While this is accurate, I strongly encourage owners and executives to reverse the diligence process on the buyer and find out as much as possible, as early as possible.
The Consumer Relations Consortium (CRC) last Thursday submitted comments on the CFPB’s Advance Notice of Proposed Rulemaking (ANPR) for debt collection. The CRC provided a response to nearly all of the 162 questions (plus sub-questions) posed by the Bureau. In a few cases, response was left to other industry associations that are closer to those particular topics.
The U.S. House of Representatives late Thursday passed a bill that would dramatically change the structure of the Consumer Financial Protection Bureau (CFPB) and limit the powers the agency was given to regulate the consumer finance industry, including rulemaking authority.
The debt buyer reported cash collections of $1.3 billion in 2013 and significant growth in revenue and debt purchases.
In the latest exchange in an increasing arms race among public U.S. debt buyers, Encore Capital Group said it acquired a controlling stake in a debt purchaser in Latin America and a UK-based firm that handles bankruptcies in that country.
A state appeals court in Illinois earlier this month ruled that a debt collection law firm that filed a collection suit on behalf of a debt buyer not licensed in the state did not violate the Fair Debt Collection Practices Act (FDCPA) as alleged in a consumer action.
Market changes since the FDCPA’s passage in 1977 and the postcrisis shift toward regulation have opened the door to significantly enhanced consumer protections. The CFPB’s rulemaking has the potential to alter dynamics in every corner of the industry, from reducing recovery rates and limiting post-charge-off sale options and pricing to driving further consolidation by firms with sophisticated processes, systems, and controls.