This Week in Credit Card News: New Federal Rules for Debt Collectors
October 29, 2012
Starting on Jan. 2, 2013, the Consumer Financial Protection Bureau (CFPB) will have oversight over debt collection agencies. Already, the aggressive tactics of some collectors have attracted scrutiny from consumer protection groups and state regulators. The federal agency will monitor companies that specialize in collecting money for consumer debt, as well as collectors that contract with the Education Department to pursue overdue student loans. Officials say the department has more than $850 billion in student loans outstanding. The CFPB will examine companies to make sure they properly identify themselves to consumers and properly disclose the amount of debt owed. Collectors also must have a process in place for resolving disputes and communicating “civilly and honestly” with consumers.
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