There are some groups of companies that numerous people have been waiting for the Consumer Financial Protection Bureau to get in order. Probably the leading one would be debt collection companies, which have been released numerous guidelines by the Consumer Financial Protection Bureau.
Consumer Financial Protection Bureau tells debt collection agencies a brand new sheriff is in town
Debt collectors are not all that bad much of the time, but there are a few bad ones that given the rest a bad name. The industry and the people working in it are hated by most.
From 2000 to 2011, there was an enormous increase in the number of grievances 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.
A ton of individuals have waited for the Consumer Financial Protection Bureau to notice and deal with the issue, and the agency just publicized its plans to do just that.
Extra rules soon
Starting January 2, 2013, debt collectors will officially be under Consumer Financial Protection Bureau direction. The bureau asserts that it wants debt collection agencies will have to clearly identify themselves and disclose the amount of debt owed, as well as communicates "civilly and honestly" with people they are trying to collect a debt from. Granted, people should pay their personal loans and other obligations, but that doesn't mean they should be subjected to abuse.
All non-bank financial institutions are under control of the Consumer Financial Protection Bureau as the Dodd-Frank Act requires.
However, the direction doesn't bring even the greater part of debt collectors under its purview. CFPB supervision, according to the Washington Post, will cover those with $10 million or more in annual receipts, or about 175 of the 4,500 debt collection companies operating nationwide. However, they also represent 63 percent of the business done by the industry, which according to the New York Times makes up roughly $12.2 billion per year as a whole.
Reprieve or token gesture
Debt collection agencies are not that bad, particularly when you consider about every 5 in 1 million people complains, according to Forbes.
It is not worth regulating top players considering they do not account for the majority of the problems, though the CFPB is still working on additional rules for the market. There is more scrutiny with practices because they are the largest creditors and largest firms.
Consumer Financial Protection Bureau tells debt collection agencies a brand new sheriff is in town
Debt collectors are not all that bad much of the time, but there are a few bad ones that given the rest a bad name. The industry and the people working in it are hated by most.
From 2000 to 2011, there was an enormous increase in the number of grievances 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.
A ton of individuals have waited for the Consumer Financial Protection Bureau to notice and deal with the issue, and the agency just publicized its plans to do just that.
Extra rules soon
Starting January 2, 2013, debt collectors will officially be under Consumer Financial Protection Bureau direction. The bureau asserts that it wants debt collection agencies will have to clearly identify themselves and disclose the amount of debt owed, as well as communicates "civilly and honestly" with people they are trying to collect a debt from. Granted, people should pay their personal loans and other obligations, but that doesn't mean they should be subjected to abuse.
All non-bank financial institutions are under control of the Consumer Financial Protection Bureau as the Dodd-Frank Act requires.
However, the direction doesn't bring even the greater part of debt collectors under its purview. CFPB supervision, according to the Washington Post, will cover those with $10 million or more in annual receipts, or about 175 of the 4,500 debt collection companies operating nationwide. However, they also represent 63 percent of the business done by the industry, which according to the New York Times makes up roughly $12.2 billion per year as a whole.
Reprieve or token gesture
Debt collection agencies are not that bad, particularly when you consider about every 5 in 1 million people complains, according to Forbes.
It is not worth regulating top players considering they do not account for the majority of the problems, though the CFPB is still working on additional rules for the market. There is more scrutiny with practices because they are the largest creditors and largest firms.
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