There’s a new sheriff in town and his name is Richard Cordray.
Mr. Cordray is the director of the Consumer Financial Protection Bureau (CFPB) which is the governing body now responsible for policing the markets for consumer financial products and services and he is about to make it very difficult for the majority of the debt collection industry.
Let’s take a look a three quotes from the CFPB’s website so you can see what I mean:
- “Where the goal of the CFPB is to help honest debt collectors do their job responsibly and see that rest are either rehabilitated or run out of business once and for all.” If you were Portfolio Recovery Associates, Encore Capital or one of the other large debt buyers and collectors on Wall Street with the “sue em all” business strategy and already in the cross hairs of 38 Attorney’s General, you should be concerned.
- “Vison to create a consumer financial marketplace in which no one can build a business model around unfair, deceptive or abusive practices.” When typical debt collectors gain roughly 50% of their revenue from suing consumers where they have faulty documentation, that is a business model that is unfair, deceptive, or abusive. Typical collection agencies are shaking in their boots.
- In a key priority section from the CFPB’s strategic plan (which is basically the operating instructions for their employees telling them what to do in the morning) it states: “Protecting honest businesses from competitors who use unscrupulous business practices to gain an unfair advantage and we will do that by using enforcement authority to address violations of federal consumer financial laws.” So what they are saying is that we, the CFPB, are going to protect honest businesses from their competitors who use unscrupulous practices.
If you’ve been a reader of this blog for awhile you know we’re on a mission to change the debt collection industry. The mission is bigger then our political beliefs. It’s bigger then whether we like the guy that got elected or not. We’re talking about approximately 30 million Americans which is a much bigger deal then who is sitting in which chair in which office.
Coming January 3, 2013, the CFPB will begin auditing collection agencies. Our collection agency, CFS II is the only debt collection company that fits the mold for the vision that they have laid out . Nobody does what they do the way they do it.
ALL the other collection agencies either have FDCPA complaints, FTC complaints, attorney general complaints, or they engage in robo signing or robo suing. And that means the CFPB is not only going to help us grow but by mission statement they are going to hurt our competitors…how could it get better than that.
Do Good and Make Money!