Yesterday, in advance of today’s Consumer Financial Protection Bureau (CFPB) debt collection roundtable with the Federal Trade Commission (FTC), U.S. Sen. Sherrod Brown (D-OH) called on CFPB Director Cordray to enact rules to rein in debt collection policies that lead to consumer abuses.
In a letter to the CFPB, Brown urged Cordray to examine practices of both creditors and third-party actors in the industry and suggested a number of rules that would reform the debt collection industry including:
- Require debt collectors, whether primary creditors or third party collectors, to hold all relevant documentation before issuing their first debt collection notice to the consumer
- Eliminate the sale or collection of time-barred debt
- Require that information on prior collection attempts travel with the debt
- Issue updated guidance for consumer dispute procedures reflecting the new technological possibilities for documented consumer disputes.
- Prohibit the sale of unverifiable debts
Brown sits on both the Senate Finance Committee and the Committee on Banking, Housing, and Urban Affairs. He is the Chair of the Senate Banking Subcommittee on Financial Institutions and Consumer Protection and will hold a hearing on debt collection next month to shed light on the industry’s practices.
Needless to say the spotlight is beginning to shine on an industry with a reputation for abusing consumers.
What’s interesting is that there currently exists a vastly superior debt collection model. A model that treats debtors with the dignity and respect they deserve and helps them to get back on track. A model that is able to produce a high return on investment without suing anyone. A model that receives testimonials in lieu of complaints. A model worthy of receiving a 2013 Friend of the Consumer Award from the American Consumer Council and practiced by our collection agency making it the only debt-collection company to ever be recognized!
Do Good and Make Money!