In the coming months, the Consumer Financial Protection Bureau will take over the responsibility for debt collection complaints from the Federal Trade Commission. They, the CFPB, have been collecting data for over a year now and this past June made their complaint data public.
Over the past year the CFPB has collected over 15,000 complaints against credit card issuers. A quick review of the data reveals that when you combine the two data sets that relate directly to collection agencies, “Collection Practices” and “Collection Debt Disputes” you arrive at the third largest complaint cited by consumers. So even though the Consumer Financial Protection Bureau isn’t currently receiving consumer complaints about debt collection, recovery practices are already a top concern. In fact, a few collection agencies are already popping up in the list of company names in the credit card complaints.
As the high volume of complaints by consumers against debt collection practices continues to plague the industry, the CFPB will begin to take action. Debt collection agencies who have not prepared for the coming crack down by adjusting their “Sue Em All” collection strategy will be in for a rude awakening as their business models crumble.
We’ll be there to pick up the pieces.
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