The Changing Face of the Collection Industry in Light of New Regulations

Linda Straub Jones

We’ve all seen the headlines lately with the statistics of lawsuits rising against collection agencies, of penalties handed down by the CFPB and the courts, of settlements against collection agencies and even speculation that the business of debt collection is going the way of the dinosaur.  But is the business of collections really going away, or is it just going through another change?

Back in 1977 when the FDCPA was enacted, many agencies thought “that’s it, we’re done”, but agencies didn’t go away; they just had to comply with some much needed regulation.  Those who could and would comply did, and those who couldn’t or wouldn’t are gone, but that’s a good thing.  It’s been better for consumers, and has helped to bring a little more respect to the collection industry.