There are some groups of businesses that numerous people have been waiting for the Consumer Financial Protection Bureau to get in order. Perhaps the top one would be debt collection companies, which have been released a number of tips by the CFPB.
Taking care of good guys with Consumer Financial Protection Bureau
There is a lot 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 market a bad name.
The Federal Trade Commission, according to the New York Times, received more than 180,000 complaints about debt collectors in 2011. In 2000, the Federal Trade Commission received 13,950. According to Forbes, the top 100 debt collectors by receipts accounted for 21 percent of grievances to the Federal Trade Commission about debt collection companies, meaning much of the bad activity is concentrated among the smaller firms.
The Consumer Financial Protection Bureau has finally publicized that it is prepared to bring in the industry's behavior, which many people have been waiting for.
Getting guidelines in January
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 Consumer Financial Protection Bureau will really be checking to make sure debt collectors are in line.
The Consumer Financial Protection Bureau is authorized under the Dodd-Frank Act, which created the bureau and its mandate, to regulate "non-bank financial institutions" which deal with consumers.
The only problem with it all is that smaller businesses are off the hook since only businesses with $10 million or more in yearly receipts are being watched, according to the Washington Post. The New York Times points out that it is still going to be $12.2 billion a year watched and about 63 percent of business, which is good. However, only 175 of the 4,500 debt collectors are represented in that number.
Guidelines for regulation
Debt collection companies 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 most 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.
Taking care of good guys with Consumer Financial Protection Bureau
There is a lot 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 market a bad name.
The Federal Trade Commission, according to the New York Times, received more than 180,000 complaints about debt collectors in 2011. In 2000, the Federal Trade Commission received 13,950. According to Forbes, the top 100 debt collectors by receipts accounted for 21 percent of grievances to the Federal Trade Commission about debt collection companies, meaning much of the bad activity is concentrated among the smaller firms.
The Consumer Financial Protection Bureau has finally publicized that it is prepared to bring in the industry's behavior, which many people have been waiting for.
Getting guidelines in January
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 Consumer Financial Protection Bureau will really be checking to make sure debt collectors are in line.
The Consumer Financial Protection Bureau is authorized under the Dodd-Frank Act, which created the bureau and its mandate, to regulate "non-bank financial institutions" which deal with consumers.
The only problem with it all is that smaller businesses are off the hook since only businesses with $10 million or more in yearly receipts are being watched, according to the Washington Post. The New York Times points out that it is still going to be $12.2 billion a year watched and about 63 percent of business, which is good. However, only 175 of the 4,500 debt collectors are represented in that number.
Guidelines for regulation
Debt collection companies 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 most 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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