Tuesday, November 20, 2012

Consumer Financial Protection Bureau to Supervise Debt Collection Firms

The Consumer Financial Protection Bureau created new rules in order to supervise large debt collection firms. Beginning January 2, the government agency will regulate debt collection firms that have over $10 million in annual receipts. The rules ensure that the debt collectors are providing consumers with disclosures and accurate information and not harassing or deceiving consumers in their attempts to collect on a debt.

The Consumer Financial Protection Bureau has authority over three types of debt collection companies – companies that buy debt and collect the proceeds (which may be a portion of what is actually owed), firms that recover the debt owed on behalf of another company (and charge a fee for their service) and lawyers who collect through litigation.

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