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.