There are some groups of companies that numerous individuals have been waiting for the Consumer Financial Protection Bureau to get under control. Perhaps the leading one would be debt collection agencies, which have been released a number of guidelines by the CFPB.
Taking care of good guys with CFPB
Debt collectors are not all that bad most 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.
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 lot of growth from 2000 when it was only 13,950 complaints. The majority of the bad activity is obviously with smaller firms since only 21 percent of grievances to the Federal Trade Commission were from the top 100 debt collectors.
A lot of people have waited for the CFPB to notice and deal with the issue, and the bureau just announced its plans to do just that.
Extra rules soon
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 expected to be honest and civil with those they collect from. Starting January 2, 2013, the CFPB will actually be checking to make sure debt collectors are in line.
The Dodd-Frank Act created the bureau and is what allows the Consumer Financial Protection Bureau to deal with non-bank financial institutions.
However, the supervision doesn't bring even the majority of debt collectors under its purview. Consumer Financial Protection Bureau supervision, 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 companies 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 bad
Debt collection companies are not that bad, specifically when you consider about every 5 in 1 million people complains, according to Forbes.
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 creating guidelines 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.
Taking care of good guys with CFPB
Debt collectors are not all that bad most 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.
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 lot of growth from 2000 when it was only 13,950 complaints. The majority of the bad activity is obviously with smaller firms since only 21 percent of grievances to the Federal Trade Commission were from the top 100 debt collectors.
A lot of people have waited for the CFPB to notice and deal with the issue, and the bureau just announced its plans to do just that.
Extra rules soon
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 expected to be honest and civil with those they collect from. Starting January 2, 2013, the CFPB will actually be checking to make sure debt collectors are in line.
The Dodd-Frank Act created the bureau and is what allows the Consumer Financial Protection Bureau to deal with non-bank financial institutions.
However, the supervision doesn't bring even the majority of debt collectors under its purview. Consumer Financial Protection Bureau supervision, 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 companies 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 bad
Debt collection companies are not that bad, specifically when you consider about every 5 in 1 million people complains, according to Forbes.
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 creating guidelines 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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