The Consumer Financial Protection Bureau (CFPB) today announced a proposed rule to include debt collectors and consumer reporting agencies under its nonbank supervision program. This would mark the first time these important and far-reaching consumer financial market participants are subject to federal supervision.
The proposed rule would mean that those debt collectors and credit reporting agencies that qualify as “larger participants” (more than $10 million in annual receipts from debt collection activities) are subject to the same supervision process that apply to the banks.
Debt collectors and consumer reporting agencies touch millions of American consumers. About 30 million Americans have debt under collection. For these consumers, the average amount under collection is $1,400. Three main kinds of debt collection firms dominate the market: firms that collect debt owned by another company in return for a fee; firms that buy debt and collect the proceeds for themselves; and debt collection attorneys and law firms that collect through litigation. A single company may collect through any or all of these activities.
The full text of the proposed rule can be found by clicking here.
If you are being called by a debt collection agency, know your rights and don’t let them break the law. Contact Paramount Law for assistance. You may be entitled to statutory damages of up to $1,000.00.