There are a few groups of companies that a number of people have been waiting for the CFPB to get in order. Perhaps the leading one would be debt collection companies, which have been released a number of guidelines by the CFPB.
CFPB tells debt collection agencies a brand new sheriff is in town
Few classes of companies are as reviled as debt collectors. Though most are reasonable enough and upstanding businesses, the bad apples, as with any business or group of any sort, give the industry a bad name. Given some of their behavior, they possibly have it coming.
From 2000 to 2011, there was a huge increase in the number of complaints the Federal Trade Commission got from 13,950 to over 180,000 grievances, according to the New York Times. Of those grievances, 21 percent came from the top 100 debt collectors in the country, according to Forbes. That means smaller firms are doing the majority of the nasty business.
Many have been waiting for the CFPB to bring in the industry's practices and curb abuses and the agency has informed debt collectors that there is a brand new sheriff in town.
Start of new rules
The Consumer Financial Protection Bureau will be in charge of debt collectors officially on Jan 2, 2013 and will make sure debt collectors are honest and civil in their communications with people. People should always pay their personal loans and other debt, but they also should not be abused when they neglect to. Companies will need to reconsider their debt practices.
All non-bank financial institutions are under control of the Consumer Financial Protection Bureau as the Dodd-Frank Act requires.
The Consumer Financial Protection Bureau only supervises corporations that have over $10 million or more in recipients, which only accounts for 175 of the 4,500 debt collection companies in the country. About 63 percent of the business is done in the big companies, which means at least $12.2 billion a year is being watched closely, according to the New York Times. The smaller businesses might be able to get away with their bad practices still.
Guidelines for regulation
According to Forbes, about 5 in every one million people complain even though the top 100 companies only accounted for 21 percent of grievances. There are not that many grievances regardless of the bad news of debt collection companies.
The largest firms are the largest creditors, and it makes sense that they would be more careful with their practices. It may not be worth producing rules just for them since the small corporations are making the mistakes. Still, the Consumer Financial Protection Bureau is working on guidelines to regulate the industry better.
CFPB tells debt collection agencies a brand new sheriff is in town
Few classes of companies are as reviled as debt collectors. Though most are reasonable enough and upstanding businesses, the bad apples, as with any business or group of any sort, give the industry a bad name. Given some of their behavior, they possibly have it coming.
From 2000 to 2011, there was a huge increase in the number of complaints the Federal Trade Commission got from 13,950 to over 180,000 grievances, according to the New York Times. Of those grievances, 21 percent came from the top 100 debt collectors in the country, according to Forbes. That means smaller firms are doing the majority of the nasty business.
Many have been waiting for the CFPB to bring in the industry's practices and curb abuses and the agency has informed debt collectors that there is a brand new sheriff in town.
Start of new rules
The Consumer Financial Protection Bureau will be in charge of debt collectors officially on Jan 2, 2013 and will make sure debt collectors are honest and civil in their communications with people. People should always pay their personal loans and other debt, but they also should not be abused when they neglect to. Companies will need to reconsider their debt practices.
All non-bank financial institutions are under control of the Consumer Financial Protection Bureau as the Dodd-Frank Act requires.
The Consumer Financial Protection Bureau only supervises corporations that have over $10 million or more in recipients, which only accounts for 175 of the 4,500 debt collection companies in the country. About 63 percent of the business is done in the big companies, which means at least $12.2 billion a year is being watched closely, according to the New York Times. The smaller businesses might be able to get away with their bad practices still.
Guidelines for regulation
According to Forbes, about 5 in every one million people complain even though the top 100 companies only accounted for 21 percent of grievances. There are not that many grievances regardless of the bad news of debt collection companies.
The largest firms are the largest creditors, and it makes sense that they would be more careful with their practices. It may not be worth producing rules just for them since the small corporations are making the mistakes. Still, the Consumer Financial Protection Bureau is working on guidelines to regulate the industry better.
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