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Debt Collection Complaints and Regulation: Last Chance to Comment on ANPR

posted by Dalié Jiménez

Today is your last chance to comment on the CFPB's Advanced Notice of Proposed Rulemaking on Regulation F, regarding debt collection.  I had the pleasure of working with Pat McCoy on a joint comment to the ANPR.  Our comment addresses documentation and information requirements for collectors, chain of title issues, and debt repositories.

After reading two reports released yesterday I'm even more convinced that these are among the most critical issues.  The FTC announced their top 2013 complaints (debt collection still the top industry complained about) and US PIRG released a report on the more than 11,000 complaints the CFPB received on debt collection over a six month period.  The PIRG report in particular highlights just how important the integrity of the information and documentation passed from collector to collector is (and how badly this is working right now).  Most consumers were complaining that the debt was not theirs (25%), they were not given enough information to verify the debt (13%), or that the debt had already been paid (11%).  

This is exactly the underlying issue that we address in our ANPR comment: something is very wrong when a debt buyer only gets a spreadsheet with some information about the debt, gets no documents in connection with the debt, signs a contract where the seller doesn't stand behind the information sold (and sometimes specifically says amounts or interest may be wrong), and then attempts to collect on that debt. I've argued that this violates the FDCPA.  In our comment we try to propose some ways to fix this problem going forward.

I urge Credit Slips readers to send in your comments before the 11:59pm deadline.

Comments

My comment is in MAJOR SUPPORT of the new and revised requirements of debt collectors (per ANPR). In fact, I have just this week mailed three such complaints to the CFPB. At the age of 70 years, both fraudulent collectors and their third party attorneys have intruded upon my life via phone and mail causing great upset - freezing my bank account (including Social Security) after violating the FDCPA requirements via my request for documentation which was not forthcoming. WORSE OFFENDERS BANK OF AMERICA/FIA, LACY KATZEN, attorney and RUBIN AND ROTHMAN, attorney. Was sued without my knowledge (found out via frozen account) by each. Went to court (2nd eastern district, NYC). Must return on March 10 via Judge's orders (even though plaintiff did not show) for pre-trial conference. I must prove this is not my card/debt without even seeing what other side has??? Was never served, which 'they' claim, though there is no signature or document.

Am extraordinarily grateful to Elizabeth Warren for fighting so diligently for CFPB and for latter's website which lists offending collectors. I strongly believe that the attorneys who represent the fraudulent collectors should be required to appear before their respective Bars for, at the very least, temporary removal of their licenses to practice. Also feel fortunate to have discovered "CREDIT SLIPS."

Thank you.

standing contains three elements.” Lujan v. Defenders of Wildlife, 504 U.S. 555, 560

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