Aug 01, 2013 Philip Burgess
With the creation of the Consumer Financial Protection Bureau (CFPB) several years ago, many debt collection agencies expressed concerns about being over-regulated. Many industry professionals believed that the body would target their business, as the regulatory agency lacked a representative from the collection sector.
However, reports suggest that the CFPB may be taking steps to work with debt collection groups, which could strengthen the industry. Dave Rudd of insideARM recently indicated that CFPB experts stated that they have been in close contact with representatives from ACA International, a debt services advocacy group. Rudd noted that recent comments made by CFPB officials at the ACA International Conference showed that both organizations were in close contact and even hinted that there is a personal respect among the leaders at both bodies.
As a result of the discussions that appear to be taking place, Rudd expressed optimism about the future of the industry. With a number of ambiguous laws affecting collection efforts, it's difficult for recovery professionals to comply with regulations. However, constructive contact between the two groups could go a long way in streamlining and defining policies in the future that could reduce the litigation that is associated with debt services activity.
Positive developments for the sector could be beneficial for the overall American economy. According to a recent report from research firm IBISWorld, revenue from debt services enterprises in the United States totals about $13 billion annually.
Also, with over 150,000 direct employees at over 9,000 firms, debt collection companies are major players in private sector employment. Moreover, the source indicated that a recovering U.S economy will lead to more opportunities for debt collection, which could result in an increase in industry jobs in the next five years.