There are some groups of companies that numerous people have been waiting for the CFPB to get in order. Probably the leading one would be debt collection agencies, which have been released a number of tips by the Consumer Financial Protection Bureau.
CFPB ready to look after business
There is a ton of hatred in the debt collectors business, which they probably deserve considering some of the things collectors do. Though there are good debt collectors out there, there are a lot of bad apples that give the industry a bad name.
In 2011, over 180,000 grievances were made about debt collectors to the Federal Trade Commission, according to the New York Times. That is a ton of growth from 2000 when it was only 13,950 complaints. Much of the bad activity is certainly with smaller firms since only 21 percent of complaints to the FTC were from the top 100 debt collectors.
Many have been waiting for the Consumer Financial Protection Bureau to bring in the industry's practices and curb abuses and the bureau has informed debt collectors that there is a brand new sheriff in town.
Beginning of new guidelines
People should always repay their personal loans and other debts that they take out willingly, but abuse is never the answer to anything. That is why debt collectors are anticipated to be honest and civil with those they collect from. Starting January 2, 2013, the CFPB will really be checking to make sure debt collectors are in line.
The CFPB is authorized under the Dodd-Frank Act, which produced the bureau and its mandate, to regulate "non-bank financial institutions" which deal with consumers.
However, the supervision doesn't bring even the greater part of debt collectors under its purview. Consumer Financial Protection Bureau direction, according to the Washington Post, will cover those with $10 million or more in yearly receipts, or about 175 of the 4,500 debt collection agencies operating nationwide. However, they also represent 63 percent of the business done by the market, which according to the New York Times makes up roughly $12.2 billion per year as a whole.
Not all that poor
According to Forbes, about 5 in every one million people complain even though the top 100 businesses only accounted for 21 percent of complaints. 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 businesses are making the mistakes. Still, the CFPB is working on rules to regulate the market better.
CFPB ready to look after business
There is a ton of hatred in the debt collectors business, which they probably deserve considering some of the things collectors do. Though there are good debt collectors out there, there are a lot of bad apples that give the industry a bad name.
In 2011, over 180,000 grievances were made about debt collectors to the Federal Trade Commission, according to the New York Times. That is a ton of growth from 2000 when it was only 13,950 complaints. Much of the bad activity is certainly with smaller firms since only 21 percent of complaints to the FTC were from the top 100 debt collectors.
Many have been waiting for the Consumer Financial Protection Bureau to bring in the industry's practices and curb abuses and the bureau has informed debt collectors that there is a brand new sheriff in town.
Beginning of new guidelines
People should always repay their personal loans and other debts that they take out willingly, but abuse is never the answer to anything. That is why debt collectors are anticipated to be honest and civil with those they collect from. Starting January 2, 2013, the CFPB will really be checking to make sure debt collectors are in line.
The CFPB is authorized under the Dodd-Frank Act, which produced the bureau and its mandate, to regulate "non-bank financial institutions" which deal with consumers.
However, the supervision doesn't bring even the greater part of debt collectors under its purview. Consumer Financial Protection Bureau direction, according to the Washington Post, will cover those with $10 million or more in yearly receipts, or about 175 of the 4,500 debt collection agencies operating nationwide. However, they also represent 63 percent of the business done by the market, which according to the New York Times makes up roughly $12.2 billion per year as a whole.
Not all that poor
According to Forbes, about 5 in every one million people complain even though the top 100 businesses only accounted for 21 percent of complaints. 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 businesses are making the mistakes. Still, the CFPB is working on rules to regulate the market better.
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