CFPB now involved in debt collection oversight

Several new laws have affected the debt collection industry substantially in recent years, especially as consumers continue to try and obtain outstanding loans at a greater volume than ever before. This has led to more complex issues facing debt collection agencies, and they need to be approached with diligent, educated and responsible actions to remain out of harm's way.

Debt collection agencies have long been the victims of poor press, largely the result of the abusive practices of only a few organizations and practitioners. However, by following the laws and maintaining professionalism when seeking out debts from individuals or businesses, such firms can work to break the stigma currently plaguing the industry.

CFPB stepping up to the plate
Reverd.com, an online reverse phone lookup services, recently reported that the Consumer Financial Protection Bureau (CFPB) will begin to monitor debt collection calls in the coming months. According to the news provider, one statute of the Fair Debt Collection Practices Act (FDCPA) demands the CFPB maintain oversight over the calls debt collectors make to individuals.

Communications are largely the most regulated segments of the debt collection industry and agencies need to oblige the wide variety of laws in place to avoid legal action and potential financial damages. Phone calls have been a particular pressure point in recent years, and the CFPB is seeking to eradicate this issue as swiftly as possible. 

"Twenty, 50 or sometimes even hundreds of times - we've seen cases where customers get harassing phone calls from agencies that attempt to hide their identity," Mark McCoy, CEO of Reverd.com, explained. "This makes the harassment worse, when you can't figure out who or what the collection is about."

The website added that the new rule to empower the CFPB with oversight responsibilities will likely lead to a major shift in most debt collection practices. Though the majority of agencies in the industry follow laws, the increasing pressure from federal departments is making even the most moral collectors shift their processes.

Abusive actions not necessary
Many debt collection agencies that do partake in actions that can be deemed abusive are simply doing so because of negligence to the law. Business owners who need to retrieve outstanding loans should always consider hiring professional third-party service providers to handle the debt collection process, as this will ensure legal and professional actions throughout the variety of responsibilities associated with collections.