Richard Cordray, director of the CFPB, said “This is about bringing better accuracy and accountability to a market that desperately needs it. We continue to hear about serious problems with debt collection – debiting accounts without authorization, calling at all hours of the day or night, threats of arrest or criminal prosecution, or threats of physical harm to consumers and even their pets,” Cordray remarked.
Similar to the payday loan industry, the debt collection agency remains highly controversial and finds itself under constant scrutiny from both consumer advocates and government entities alike. Before proposing official changes to the current rules, the CFPB will hold a public hearing and will look to a panel of small business owners for more insights on the impact of the proposed reforms. If all goes well, official rules could be put in place prior the end of 2016.