CFPB Regulation of Debt Collectors – It’s Not Enough, But It’s a Start

October 24, 2012 By Leave a Comment

Beginning January 2, 2013 the CFPB, the year old consumer watchdog agency, will be begin to oversee debt collectors. While I view this as a very positive step towards cleaning up the most complained about industry (according to the FTC), a big problem remains:

The CFPB will only be regulating collection firms that have over $10 million in annual receipts from collections. This represents only about 175 of the 4,500 collection firms in the U.S.

 So while this is a good start (these larger firms comprise roughly 60% of the industry’s collection revenue), it’s only that…a start.

 Under the visionary and capable leadership of CFPB Director Richard Cordray, I believe we will soon see a measurable drop in consumer misdeeds like:

  • Contacting consumers before 8 am or after 9 pm
  • Threats to bodily harm
  • Fake legal or law enforcement

A journey of a thousand miles does indeed begin with a single step.

 

Bill

Hi, I'm Bill Bartmann and I am on a mission to reform the debt collection industry in America. Please join with me as we bring a petition to Washington D.C., and make Congress close all the legal loopholes in debt collection practices. It's time to stop these debt collection abuses and stop these criminals. Join with me! Sign the petition today! http://stopthesecriminals.com/petition

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Fox Reports on CFPB Jeopardy

October 15, 2012 By Leave a Comment

Fox Business is now reporting on the story from Bankrate.com pointing out the importance of the election on the fate of the Consumer Financial Protection Bureau (CFPB).

Read it here:

http://www.foxbusiness.com/personal-finance/2012/10/12/financial-watchdog-braces-for-election/

Bill

Hi, I'm Bill Bartmann and I am on a mission to reform the debt collection industry in America. Please join with me as we bring a petition to Washington D.C., and make Congress close all the legal loopholes in debt collection practices. It's time to stop these debt collection abuses and stop these criminals. Join with me! Sign the petition today! http://stopthesecriminals.com/petition

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Consumer Watchdog Agency’s Future Depends on Election

October 12, 2012 By Leave a Comment

Excellent article by Bankrate.com’s Janna Herron on how the fate of the Consumer Financial Protection Bureau(CFPB) is tied to who wins the election. 

http://www.bankrate.com/finance/politics/cfpb-existence-at-stake-election.aspx

My belief is that f President (Barack) Obama is re-elected, the CFPB will be validated and reinvigorated. If Romney wins and the Republicans keep the House and take the Senate, they likely would neuter the CFPB.

Read the specifics here: http://www.bankrate.com/finance/politics/cfpb-existence-at-stake-election.aspx

Bill

Hi, I'm Bill Bartmann and I am on a mission to reform the debt collection industry in America. Please join with me as we bring a petition to Washington D.C., and make Congress close all the legal loopholes in debt collection practices. It's time to stop these debt collection abuses and stop these criminals. Join with me! Sign the petition today! http://stopthesecriminals.com/petition

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The “Robocall” Summit

September 20, 2012 By Leave a Comment

On October 18th the FTC will hold a summit on the use of automated dialing technology (aka robocalling) when interacting consumers.

Many industries from politics to sales to debt collection use robodialing as an inexpensive way to reach consumers. From my perspective robocalling is nothing more than phone spam. Through the CAN-SPAM legislation the FTC has been able to enforce parameters on commercial emails and the time has come to do the same thing for robocalling.

Some may argue against this saying the Do Not Call Registry allows a mechanism for consumers to opt-out of these calls, while true, the Do Not Call Registry generally does not apply to debt collectors.

I believe the Do Not Call Registry should not apply to collectors because companies that are owed money should have the ability to have a dialog to resolve the matter. However, there surely needs to be some common sense limits it place. Limiting call attempts to 1 or 2 per day and requiring that it be a real person seem like logical places to start.

 

Bill

Hi, I'm Bill Bartmann and I am on a mission to reform the debt collection industry in America. Please join with me as we bring a petition to Washington D.C., and make Congress close all the legal loopholes in debt collection practices. It's time to stop these debt collection abuses and stop these criminals. Join with me! Sign the petition today! http://stopthesecriminals.com/petition

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Fixing Unemployment & Debt Collection Aggravation in One Slick Ninja Move

September 5, 2012 By Leave a Comment

It’s no secret that there are many more American’s looking for work than, by any standard, is healthy for our economy.

One of the quickest ways to impact jobs domestically is to create incentives for U.S. firms to keep jobs here instead of outsourcing them abroad. This is exactly what three visionary legislators, Senators Sherrod Brown (D-Ohio) and Robert Casey (D-PA) and Congressman Tim Bishop (D-NY) are driving hard to achieve. 

This summer Sen. Casey introduced and Sen. Brown joined as the first co-sponsor, “The United States Call Center Worker and Consumer Protection Act,” which proposes to make debt collectors who move call center jobs overseas ineligible for federal grants and loans. And, over in the house, Congressman Bishop has introduced H.R. 3596, the comparable “U.S. Call Center Worker and Consumer Protection Act,” which has attracted 107 co-sponsors, including at least six republicans.

You can’t get much more common sense than this.

It flat out doesn’t make sense to give U.S. taxpayer dollars to collection firms that then use those funds to hire non-citizens. Not only is this good legislation from an economic perspective, but it’s equally beneficial to the 30 million American’s who receive collection calls each month. Fewer things are more infuriating than trying to address very serious financial issues with someone you can’t understand or can’t understand you.

Thank you Sens. Casey, Sherrod and Congressman Bishop for speaking out on this important issue. I suspect trying to get your colleagues attention is nearly impossible right now during “campaign season.” It’s important that every member of congress realize that suffocating this Act by neglect would be a complete disservice to every single Americanwho is struggling under financial duress or is in need of a job.

Ironically, they’re often the same person.

 

 

Bill

Hi, I'm Bill Bartmann and I am on a mission to reform the debt collection industry in America. Please join with me as we bring a petition to Washington D.C., and make Congress close all the legal loopholes in debt collection practices. It's time to stop these debt collection abuses and stop these criminals. Join with me! Sign the petition today! http://stopthesecriminals.com/petition

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300 Million Reasons to Love the CFPB

August 30, 2012 By Leave a Comment

Say what you will about bloated budgets, deficit spending and governmental red-tape, but one thing that cannot be credibly argued is the amazing job of our newest government agency the CFPB.

Read this article on thestreet.com and you’ll understand what a well run government agency looks like…

Read the story — Click Here.

Bill

Hi, I'm Bill Bartmann and I am on a mission to reform the debt collection industry in America. Please join with me as we bring a petition to Washington D.C., and make Congress close all the legal loopholes in debt collection practices. It's time to stop these debt collection abuses and stop these criminals. Join with me! Sign the petition today! http://stopthesecriminals.com/petition

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FTC “Debt Collection Complaints Rise 73%”

August 30, 2012 By Leave a Comment

This week the Los Angeles Times reported that the in the past year the Federal Trade Commission (FTC) handled 180,928 complaints about debt collection agencies, landing debt collection in the #1 spot of most complained about industries.

In a down economy like we have today, it’s unfortunate, but the typical debt collector deals with people’s hampered ability to pay by doubling down on their high pressure tactics.

What was interesting to me about this report is that only half of the complaints were about abusive phone calls. Typically this is the runaway category. However many of the complaints this time were about legal tactics undertaken by debt collectors.

UPI reported on a California State Senator, Jose Luis Correa, who found his wages garnished on a $4,329 debt owed to Sears. Only problem is the collector had the wrong Luis Correa.

Why do debt collectors employ this fast and loose approach to lawsuits? Because it works.

Typically the debt collector files suit (often with dubious proof and a shoddy paper trail) and either the defendant is never served so they don’t know about their trial, or they just don’t show up. Either way, like clockwork, this results in a default judgement in favor of the collector. Now they can use the court system to strong arm their collection process.

Then there are the cases of blatant deception.

In another excellent job of reporting by UPI they highlighted the unfortunately to common case of Katie Brown, of Piqua, Ohio, who received a call from a legal aid service she had previously contacted. After divulging private information, the caller disclosed he was a debt collector holding her debt from the International Asset Group of Amherst, New York.

This is false representation and a form of debt collection harassment which is illegal. Ms. Brown is standing up to IAG, turning the tables and suing them.

It’s not easy for the little guy, especially a financially stressed little guy, to stand up to deep pocketed, conniving bullies like IAG. But, going after the bully in the place they value most, their pocketbooks, is likely the only way to get them to stop….short of legislation.

 

Bill

Hi, I'm Bill Bartmann and I am on a mission to reform the debt collection industry in America. Please join with me as we bring a petition to Washington D.C., and make Congress close all the legal loopholes in debt collection practices. It's time to stop these debt collection abuses and stop these criminals. Join with me! Sign the petition today! http://stopthesecriminals.com/petition

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My Dream — 10 Doses of Common Sense For Debt & Debt Collecting

August 27, 2012 By Leave a Comment

Fixing the hurt and anguish on all sides of the debt collection equation is many things, but one thing it is not is complicated. Like one of my heroes, Martin Luther King, I too have a dream. While I can’t state mine as eloquently as Rev. King, my dream has similarities in its goal of ending oppression for a group of 30 million citizens who have little voice and next to no ability to fight back.

 I dream that one day…..

1.     People will only borrow what they are confident they will be able to repay.

2.     Lenders will only lend to those that have the ability to repay.

3.     We’ll all understand that having problems that impacts a persons ability to repay a loan does not make them a bad person.

4.     If someone can’t (not won’t) repay as planned both sides would automatically, and willingly, sit down and restructure the repayment according to the borrowers ability to repay.

5.     When the borrowers financial situation improves, both sides would again, automati

cally, sit down and voluntary restructure the repayment plan to match the borrowers new ability to repay.

6.     Collectors would never call more frequently than once a day and a couple times a week.

7.     Collectors would speak to their borrowers in the same manner and degree of help

fulness as a Nordstrom employee would speak to their customers.

8.     Collectors would never sue. They’d realize that if the above steps are followed, giving a person who can’t pay another piece of paper telling them what they owe, is senseless.

9.     Collectors would be fined and lose their ability to be in the collections business if they deliberately lie, deceive, harass, intimidate, shame or otherwise coerce borrowers into paying.

10.  Borrowers would be able and collectors would be required to record all collection calls to be able to monitor and enforce proper collector behavior.

I believe we can achieve this…and, with the CFPB on the job, with it’s heart in the right place, I think we can do it in 2 years!

 

 

Bill

Hi, I'm Bill Bartmann and I am on a mission to reform the debt collection industry in America. Please join with me as we bring a petition to Washington D.C., and make Congress close all the legal loopholes in debt collection practices. It's time to stop these debt collection abuses and stop these criminals. Join with me! Sign the petition today! http://stopthesecriminals.com/petition

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You’ve Heard of Robo-Signing, Now Meet Robo-Testimony

August 14, 2012 By Leave a Comment
In yesterdays New York Times the always thorough Jessica Silver-Greenberg dives into the newest mess facing credit card debt collection – robo-testimony.  

As lenders and 3rd party collectors employ a strategy of “sue ‘em all and let the courts sort them out” you’ve got a problem that is best described by this quote from civil court judge Noach Dear who has presided over as many as 100 of these case PER DAY. 

“I would say that roughly 90 percent of the credit card lawsuits are flawed and can’t prove the person owes the debt.” 
~ Noach Dear, Brooklyn civil court judge

Read Ms. Silver-Greenberg’s article and tell me you don’t agree something needs to be done. As for the solution, a good starting point is with what California State Senator, Mark Leno, has proposed.

Bill

Hi, I'm Bill Bartmann and I am on a mission to reform the debt collection industry in America. Please join with me as we bring a petition to Washington D.C., and make Congress close all the legal loopholes in debt collection practices. It's time to stop these debt collection abuses and stop these criminals. Join with me! Sign the petition today! http://stopthesecriminals.com/petition

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Filed Under: Banks, Debt Collection, Government

Al Franken is the Senate’s Biggest Debt Reform Advocate

August 3, 2012 By Leave a Comment
I always loved Al Franken as a comedian. Saturday Night Live was never better than when he was there.

Now I’ve fallen in love with him as a Senator. Actions always speak louder than words and his actions show him to be a man of principle, not a politician who busies himself just playing politics.

In 2010 I took note when Sen. Franken took up the cause of debt collection reform by introducing legislation dubbed “The End Debt Collector Abuse Act” which was an attempt to update the Fair Debt Collection Practices Act (FDCPA), the prevailing law regulating debt collection activities. 

Unfortunately it failed and, in the interim, debt collection abuse has gotten significantly worse. 

If Sen. Franken didn’t really care about helping the neediest among us and reforming the broken debt collection industry, that would have been the end of it. Forever he would be able to tell constituents “I tried” — giving him the bona fides to prove himself pro-consumer.

That’s not what happened.

This summer Senator Franken has updated and reintroduced the bill, which is now called “End Debt Collector Abuse Act of 2012.” One of the parts I like the most is the increased information debt collectors will be required to present when trying to collect a debt. Because of shoddy record keeping, many 3rd party debt collectors employ the method of “sue ‘em all and let the courts sort ‘em out.” This legislation would go a long way to ending that abuse by requiring information in the validation letter to include:
  • The date of the last payment made and amount of the debt at the time of that payment
  • Itemization of principal, fees and interest making up the debt, including any charges imposed since the date of the last payment
  • Disclosure of the consumer’s right to request the collector cease communication and to have collection efforts cease under certain circumstances already set forth within the FDCPA 
  • Identification of a person at the debt collector responsible for handling complaints
Additionally it clears up the loophole of mistreatment by creditors (not just 3rd party collectors.) And, importantly, the debt no longer has to be overdue for the regulations to apply.

All very good, useful and appropriate changes. 

While I’m not so Pollyanna to think that given the proximity to the election that it will get passed now, we should all appreciate Sen. Franken for keeping the issue alive and public.  

This way, maybe the 3rd time will be the charm.

Bill

Hi, I'm Bill Bartmann and I am on a mission to reform the debt collection industry in America. Please join with me as we bring a petition to Washington D.C., and make Congress close all the legal loopholes in debt collection practices. It's time to stop these debt collection abuses and stop these criminals. Join with me! Sign the petition today! http://stopthesecriminals.com/petition

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Filed Under: Debt Collection, Government
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