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.