The CFPB has vowed to "root out" debt collection companies "flouting the rules".
Corey Stone, the Assistant Director of the Office of Deposits, Cash, Collections, and Reporting Markets at the CFPB, has testified before the Senate Banking Committee, saying the organization will work to weed out unscrupulous debt collectors.
“While many debt collectors play by the rules and treat consumers fairly and respectfully, others try to get ahead by flouting the rules,” Stone said in his testimony. “Our job is to root out bad actors and protect consumers against unfair, deceptive, or abusive practices and other legal violations, which damage both consumers and every other debt collector that tries to operate within the law.”
In January, the CFPB gained authority to supervise firms that have more than $10 million in annual receipts from consumer debt collection activities. Their supervision authority now extends to approximately 175 debt collectors and debt buyers, which account for over 60% of the consumer debt collection industry as measured by annual receipts.
“Through our examinations, we are now in a position to evaluate whether federal consumer laws are being followed at every stage of the process,” Stone said.
In addition, the CFPB recently announced it would begin to accept consumer complaints about debt collection at their Office of Consumer Response. The complaints will be forwarded to the collection company or the original creditor for resolution.