Debt collection agencies and recovery specialists will need to prepare themselves for an onslaught of regulatory activity in coming months. Most of this oversight will come from the newly formed Consumer Financial Protection Bureau.
Earlier this week, at a meeting of the National Association of Attorneys General in Washington, D.C., CFPB Director Richard Cordray called for cooperation between the agency and states governments in regulating the accounts receivable management industry. "We want to expand on what you already do so well, and we want you to take advantage of new resources we bring to the arena, including new analytical tools and insight into market trends," Cordray said. "Our goal is to help the honest debt collectors do their jobs responsibly and see that the rest are either rehabilitated or run out of business once and for all." While it's important to note the CFPB's commitment to and respect for honest debt collection activities, regulatory procedures are likely to impact the industry as a whole, rendering it difficult for these legitimate recovery services to perform their duties. Cordray added that the CFPB is currently finalizing an agreement that will be sent to the states, establishing "a general framework to share data on consumer financial protection issues."