New Protections Would Limit Collector Contact and Help Ensure the Correct Debt is collected
The Consumer Financial Protection Bureau (CFPB) is considering to overhaul the debt collection market by capping collector contact attempts and by helping to ensure that companies collect the correct debt. Under the proposals being considered, debt collectors would be required to have more and better information about the debt before they collect. As they are collecting, companies would be required to limit communications, clearly disclose debt details, and make it easier to dispute the debt. When responding to disputes, collectors would be prohibited from continuing to pursue debt without sufficient evidence. These requirements and restrictions would follow the debt if it were sold or transferred.
For more information about the proposals under consideration, click here.
- Ask students what federal laws already prohibit debt collectors from harassing, oppressing, or abusing consumers.
- Ask students if they, their friends or relatives, have ever been harassed by creditors. If so, what were their experiences?
- Debt collection market generates more complaints to the Consumer Financial Protection Bureau than any other financial product or service. Why?
- What might be some common complaints against debt collectors seeking to collect debt from consumers?