The Federal Trade Commission is presently tasked with handling consumer complaints about debt collectors and their tactics. As of July 21, 2011, the Consumer Financial Protection Bureau will begin oversight of consumer concerns, including debt collection practices. Especially with more debt collectors tapping into new ways of contacting debtors, the past year witnessed an increase in complaints about creditor collection practices.
Debt collection companies are using cell phones numbers and sending emails. Of course, upon an application for credit, this information is typically collected. Since the consumer provides the information, the debt collectors/creditors feel it is "fair game" to use these methods to make contact with debtors. The new Consumer Financial Protection Bureau will have the ability to establish rules about debt collection that address these newer technologies and the extent to which collectors can go when attempting to collect a debt.
In general, there are protections already in place to keep creditors from harassing you. For example, if you write a letter to a creditor and request that they cease calling you, they must comply with your request. That protection is already in place under the Fair Debt Collection Practices Act (FDCPA). However, even with this recent legislation, complaints by consumers have risen almost twenty percent over 2010 figures. Thus, the newly created Consumer Financial Protection Bureau will likely develop more definitive rules and regulations about collection practices upon its opening in July.
Disclaimer: This blog is for informational purposes only and does not establish a client-attorney relationship. Consult with an attorney before taking action on any information found herein as individual circumstances may affect the applicability of information provided. Call The Law Office of Michael Riley at 508-405-0831 with any questions.
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