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Proposed Rules and Regulations Under the FDCPA

In its never ending quest to improve the Fair Debt Collection Practices Act ("FDCPA"), the Consumer Financial Protection Bureau ("CFPB") continues its mission to survey American consumers to determine which areas of debt collection are still causing consumers the greatest concern.

In considering the public's opinion up to this point, the CFPB has determined the area of debt collection in need of the most improvement is ensuring collection agencies are targeting the correct consumer and that they have the correct debt and supporting documentation.  Most often when a debt is sold by an original creditor for a fraction of the amount owed, creditors do not spend the time or money to forward the necessary information about the debtors during the process.  Often times, creditors solely forward the debtors' name, address and sometimes a social security number.  The CPFB will look into implementing new laws that would require an original creditor to include more specific information about the debts prior to making the sale or require collection agencies to research the debt prior to filing suit.

The CFPB has a tough job to protect consumers during the debt collection process without jeopardizing creditors' and debt collectors' rights to recover money debtors do in fact owe.  Making a change to the FDCPA that would require a creditor to include written proof of the debt as part of the sale to a collector could be a simple way to remedy a central issue currently facing the CFPB and debtors nationwide.

If you are experiencing problems with debt collection or have a complaint or area of concern, log on to the CFPB's website.  The survey is a perfect opportunity for you as a consumer and debtor to share your voice.  The CFPB wants your input so it can improve the FDCPA and better protect consumers from the harsh and abusive collection tactics that currently exist.

If you have been the victim of a violation of the FDCPA and wish to discuss your situation with counsel, contact SmithMarco P.C. for a free case review.

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