Links in “Debt Collection”

Not that the CFPB has been asking for them, but apparently there was an 80% increase in number of complaints received by the CFPB according to the report issued. Top three complaints categories include mortgages (37%),  debt collection (19%), and credit reporting (15%). [4/1]

CFPB's Cordray states CFPB has received more than 31,000 complaints about debt collection, but the number of complaints posted in the database as of March 28 was 17,703. [4/1]

Detroit man loses case against a debt collector over a $2,000 phone bill. His case was built on the grounds that his debt collection notice said he was to respond within 30 days "of" receiving notice, when the regulation says people have 30 days to respond "after" getting a notice. Nice try. [3/28]

While the FDCPA does not apply to financial institutions collecting a debt that they own or service, recent CFPB actions suggest that may be changing. [3/27]

While debt collection complaints logged by the CFPB declined 20 percent in February, lawsuits claiming violations of the Fair Debt Collection Practices Act increased more than 10 percent. [3/25]

Bureau seeks to "develop its debt collection program over the coming year, and will work actively to protect consumers from the unfair, deceptive, abusive, and other unlawful conduct of some debt collectors." 64-page report notes that debt collection complaints are highest received by CFPB and details aspects of complaints received by Bureau. [3/24]

Association of credit and collection professionals finds the CFPB's report on debt collection complaints "seeks to justify the CFPB's existence, but falls short in looking at the underlying causes." Key points raised include CFPB's definition of complaint, consumer unwillingness to communicate with debt collectors, the Catch-22 of not leaving messages that could divulge the existence of consumer debt to others vs. calling back again and being criticized for call frequency. [3/21]

CFPB fires its salvo on debt collection industry, citing the more than 30,000 consumer complaints received about the industry and noting common consumers complaint on being hounded by debt collectors about debts not owed, aggressive communication tactics and threats of illegal actions. Report cites Bureau's actions to combat cited weaknesses. [3/21]

Plaintiff alleges Chase flooded courts for years seeking to obtain default judgements using "improper, incorrect and fraudulent affidavits" executed by employees "thousands at a time" and notarized without notaries witnessing the execution of the documents. [3/19]

Speech given at annual National Community Reinvestment Coalition (NCRC) convention highlights Bureau's efforts on consumer protection and access to credit. The speech noted continued problems in collections and mortgage industries as evidenced by the heavy volume of complaints (300,000 to date with 21,000 received in February 2014), with the majority focused on debt collections (6,200  per month on average) and mortgages (4,500). [3/13]