debt collection

Today, we presented our annual report to Congress on the Fair Debt Collection Practices Act (FDCPA.)

From the report:

“This report covers much good work done together over the past year by the CFPB and the FTC. In the last year, we began an important new chapter in the history of the FDCPA. Under the larger participant rule recently adopted by the CFPB, any firm with more than $10 million in annual receipts from consumer debt collection activities is now subject to our supervisory authority. This authority extends to about 175 debt collectors, which accounts for over 60% of the industry’s annual receipts in the consumer debt collection market. This new federal authority enables us both to protect consumers and to promote a level playing field for all law-abiding debt collectors.”

“Above all, we are concerned about the system-wide problems in the debt collection market that pose risks to consumers, and we want to see good practices come to dominate the market, including improved data integrity.”

If you have questions about debt collection, check out Ask CFPB for some answers.

Read the rest of the report.

We were in Seattle, WA today for a field hearing on debt collection.

Today’s live event has ended.

If you missed the event, CFPB Director Richard Cordray announced that for the first time at the federal level the CFPB will supervise larger consumer debt collectors. You can read Director Cordray’s remarks and watch the recording below.

Join us for a field hearing in Seattle, Washington on debt collection.

The field hearing will take place on Wednesday, Oct. 24, 2012, at 10 a.m at the Seattle Public Library, 1000 4th Avenue, Seattle, WA.

We’ll have remarks from CFPB Director, Richard Cordray, as well as testimony from consumer groups, industry representatives, and members of the public.

This event is open to the public and requires an RSVP.

To RSVP
Email cfpb.events@cfpb.gov with:

• Your full name
• Your organizational affiliation (if any)

See you there!

Since we launched on July 21st 2011, we’ve heard directly from consumers about the challenges they face in the marketplace, brought their concerns to the attention of financial institutions, and helped address their complaints. Accepting, resolving, and analyzing consumer complaints is an integral part of our work.

This week, we’ll be featuring stories from consumers who we have helped, and who have agreed to let the CFPB make their stories public.

Greg, a 39-year-old insurance adjuster from Michigan, whose credit rating was damaged after a bank failed to tell him that an account with which he was associated was in arrears.

Greg added his name to his 71-year-old mother’s checking account after he helped her move into an assisted living facility. Six months passed without Greg getting any statements or hearing from the bank. Little did he know, however, that his mother had written a check and the account was racking up big fees because its balance had fallen below zero. He found out about it when he checked his credit report and saw that he owed a collection agency $469.

Greg paid the bill but his credit was harmed and he says the bank wouldn’t help. After the CFPB got involved, the bank apologized for their error, called off the debt collector, and had Greg’s negative credit record removed.

Learn more

To see more about how we handle consumer complaints, read our Consumer Response Snapshot and to see all credit card complaints, visit our consumer complaint database.