The Consumer Financial Protection Bureau (CFPB) recently began a more aggressive approach to the debt collection industry, bypassing the larger market participant examination process and issuing Civil Investigative Demands (CIDs) to a number of debt collectors focused on specific complaints and alleged practices.
The demands are not benign; they typically require time and resources to prepare the response and can often lead to shelling out real money for defense.
In a very special episode of ARM industry legal podcast The Debt Collection Drill, John Rossman hosts guest attorney Mark Peterson, a shareholder with Moss & Barnett, P.A. who has experience in assisting members of the debt collection industry in responding to CIDs.
During the podcast, Mr. Rossman and Mr. Peterson explain the CID process, what a company should expect when a CID is received – including the cost of defending – and the difficulties with a CFPB hearing.
Listen to the 18-minute audio clip below: