The CFPB is the Consumer Financial Protection Bureau and is a government agency whose mission is to “make markets for consumer financial products and services work for Americans.” The CFPB is now involved in the debt collection industry, monitoring consumer feedback and complaints, and any collection agency conducting business in this country needs to be aware of the bureau and their standards.
Like many laws and agencies that are formed, the future is a bit unclear and their role in the collection industry and the collections and receivables of any debt in general is still vague. What we can tell you is that we are keeping an eye on this and will update as often as we can. But the bottom line is that there will be more oversight into our industry.
Why should a business care?
Third Party collection agencies and debt-collection has fallen under consumer financial products. Agencies have to follow certain state and federal laws, such as no phone calls before 8AM or after 9PM, no harassing consumers, and no adding excessive fees beyond what was originally agreed to. Since most businesses try to collect from accounts before seeking help from a third part collection agency, the CFPB has indicated that they may be looking at your debt collection practices also.
A business or what we would call the first-party creditor, should play it safe and abide by the same regulations we do. In fact, we have always suggested this.
Learn more about the FDCPA rules that we adhere to by going to the FTC website at: http://www.ftc.gov/os/statutes/fdcpa/fdcpact.shtm
A first party creditor i.e. the original business owed money, also needs to avoid any policies that may be classified as Unfair, Deceptive, or Abusive Acts or Practices (UDAAP). Most of these regulations came into play as part of the Frank-Dodd Act, but may be more encompassing with the creation of the CFPB. Again, we are doing our best to keep you up to speed on these important regulations. UDAAP specifically provides oversight on us as third party agencies and you, the business trying to collect on debt.
As the CFPB and its policies change and evolve, we at American Profit Recovery will remain on top of it and keep our practices up to par, informing you all the way.
You can find out even more about the CFPB by reading this important piece at:
To learn more about the CFPB, watch this new video as we discuss this topic. [youtube]http://www.youtube.com/watch?v=QHbvb712Qjs[/youtube]