Nov 13, 2013 Phil Burgess
The Great Recession led to a variety of financial issues among consumers and businesses, including a higher volume of outstanding debt than ever before. As the economic situation in the United States continues to heal, the debt collection sector has become increasingly active, which has led to a greater number of complaints stemming from noncompliance with the Fair Debt Collection Practices Act.
The White House recently cross-posted a blog with the Consumer Financial Protection Bureau (CFPB) to call upon individuals and businesses to provide their perspectives on the debt collection industry as it stands today. Officials in Washington have made several moves to institute reform in debt collection regulation and enforcement protocols, especially because of increased activity among agencies and a shifting technological landscape.
According to the CFPB and White House, officials have issued an Advance Notice of Proposed Rulemaking and intend to work out the kinks in the coming months to ensure that all reforms are aligned with corporate and consumer needs. While the Federal Trade Commission was once the only entity that collected debt collection complaints, the newer CFPB has become more active since its inception in 2009.
Lawmakers and public sector officials who work in these agencies believe that consumer and business input from a debtor's standpoint might be the keys to unlocking necessary legislative moves and evolution. As such, the CFPB and White House are hoping to hear from a diverse range of debtors to create more seamless and constructive legal frameworks.
Advocates and debt collectors should also become involved and speak out about their feelings related to new debt collection litigation and enforcement practices. As the economic landscape continues to evolve rapidly, it will take teamwork from lawmakers, debt collectors and debtors to attain an optimal management situation.