AGs Push for New Collection Rules

March 13, 2014
American Banker 
debt settlement news
Attorneys general representing 30 states and Washington, D.C., are pressing the Consumer Financial Protection Bureau to install new debt collection rules that more effectively safeguard the public and members of the Armed Forces.

The state officials, in response to the CFPB's call for input, submitted a number of recommendations -- such as giving states co-enforcement power to address rule violations; making original creditors subject to the rules along with debt buyers; and requiring collectors to extend traditional protections to cell phones, text messages, and other newer forms of communication. Additionally, the AGs would like to see debt sellers transfer detailed original account information to buyers, collectors produce credible proof before pursuing borrowers or initiating legal activity, and collectors limiting contact with enlisted persons -- especially those in combat zones.

"These proposed rules will help ensure that collectors are collecting the right debts from the right consumers, at the right time, for the right amount and in the right manner," said Iowa AG Tom Miller. "We're providing input [to the bureau] as it considers implementing new rules to ensure that debt buyers and debt collectors are following the law and that consumers are better protected."

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