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Thankfully, if you’re a consumer in debt, Debt Free League wants you to know this is all good news. At last, bill collectors will have a reason to contemplate about violating your consumer rights. Or else, there’s a lot you can do to get even with the violators with some help from the CFPB. If they fail to operate by the rule book, this powerful agency can easily put virtually any debt collection agency “out of business.” The New Sheriff in Town The Consumer Financial Protection Bureau is cool refreshment for millions of Americans that are experiencing greater difficulties paying off hefty bills on credit cards, student loans, and utilities. Since 1977, the only true law that governed how debt collection agencies should communicate with consumers has been the Fair Debt Collection Practices Act (FDCPA). However, its watchdog agency, the Federal Trade Commission (FTC), only had the authority to enforce the Act. But, times have changed. Soon, the CFPB will be eating the lunch of law-breaking debt collectors with a bag of tricks that goes beyond the FTC’s enforcement powers… Superman in Debt Collection Rule Making and Enforcement The Consumer Financial Protection Bureau also joins ranks with the Federal Trade Commission to enforce the Fair Debt Collection Practices Act. Furthermore, it is the enforcer of the new Consumer Financial Protection Act. But what make this new agency so unique is that it does much more than enforce consumer protection laws. Here’s a glimpse of the broad powers of the Consumer Financial Protection Bureau: - Enforcement and rule making authority; - Authority to enforce the Consumer Financial Protection Act and other CFPB regulations; - Power to request compliance reports, conduct financial examinations and investigations; - Authority to bring enforcement actions in federal court, and issue cease and desist orders; But, wait, there’s MORE… Debt Collection Agencies Face Crippling Fines Before the regulatory agency, there wasn’t much monetary punishment that consumers in debt could dish out to debt collection agencies that violated their rights. The maximum fine against violators under the Fair Debt Collection Practices Act is $1,000 per violation. At most, a collector could get slapped in court with a maximum $2,500 fine provided there was also a telecommunications violation under the Telephone Consumer Protection Act (TCPA). But, the new sheriff is a big game changer. They can sanction rogue debt collectors with civil penalties ranging from $5,000 to as much as a WHOPPING $1 million dollars per day PER VIOLATION. Plus now, every single state attorney general has authority to seek civil penalties against debt collectors in federal or state court for violations of the Consumer Financial Protection Act and Consumer Financial Protection Bureau regulations. This essentially means that just in fines, debt collection agencies that don’t have their house in order are bound to get shut down. OTHER WAYS TO GET EVEN WITH DEBT COLLECTORS… • Use a free Android phone recording app (click here for article) to help you get even by documenting the violators. • Hire a debt settlements professional and get on the driver’s seat with some worthy settlements. • If you suspect your consumer rights were violated by a collection agency, report the violators by calling the CFPB at (855) 411-CFPB (2372) or the Federal Trade Commission at 1-877-FTC-HELP (1-877-382-4357). • You can also call Debt Free League at 1-800-213-9968 for some great tips.
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It’s about time there was some type of policing of debt collectors. They are so unscrupulous. We don’t even bother answering our phone anymore unless we know the number on the caller id. It’s like we live in fear. We are going to use the contact form on your site to get in touch with you to see if you can help us get our debt under control. Thank you.
Thanks. We’ll be glad to help.
Fantastic. We look forward to assist you.
This is a really great article! The introduction of the Consumer Financial Protection Bureau is actually a great idea from what I can tell. With economic times being so difficult, paying off debt can be a lot harder then one would like. While I, of course, do think these people should pay their debts off; I do wish more companies could be understanding of situational problems people face on a day to day basis. Of course, when these companies overstep their boundaries and start, essentially, harassing people then it is important to keep these businesses in line. After all, we are all human beings, and not everyone in debt wants to be in debt as well. Having the proverbial “sheriff” in town is a great way to go about policing these companies, and is an excellent way to minimize the fear people have to have of collection agencies.
You really sold me on the fact that the Consumer Financial Protection Bureau will be serving society really well these days. Honestly, by the middle of your article, I began reading it in the voice of the late Billy Mays (from tv infomercials). Well done there!
Anyways, on a more serious note, I’m not usually for the government becoming more involved in our day to day lives, but for once this actually seems like a good move to protect the rights and freedoms of individuals from the occasional tyranny of big business and debt collectors. Not that debt collectors don’t serve their place in society, it is just important to keep them in line and remind everyone that we are human.