Debt Collection & Settlement

More than 4 million Americans are subject to wage garnishments for outstanding consumer debts and over 64 million people are being pursued by debt collectors, making them vulnerable to being sued for the wrong debt or the wrong amount of debt, among other predatory debt collection practices. People of color are more likely to be contacted by collectors and to be impacted by lawsuits resulting in wage garnishment and bank levies. CRL advocates for the protection of $1,000 per week in take home pay from wage garnishment and works to expose abusive debt collection and settlement practices. 

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Polling Memo: Voters Support Strong Consumer Financial Protections and Tough Regulation of Wall Street

Polling Memo: Voters Support Strong Consumer Financial Protections and Tough Regulation of Wall Street

Ten years after passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act, with the country again facing an economic crisis, new polling data from Lake Research Partners, commissioned by the Center for Responsible Lending and Americans for Financial Reform shows that voters across all political parties are broadly and intensely supportive of strong consumer financial protections and of...
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Research
Consumer Finance Debt Collection & Settlement Overdraft Fees Student Loans Payday and Other Small Dollar Loans

The CFPB’s Approach to Time-Barred Debt and the Proposed Disclosures Will Perpetuate Abusive Practices and Widen the Racial Wealth Gap

The CFPB’s Approach to Time-Barred Debt and the Proposed Disclosures Will Perpetuate Abusive Practices and Widen the Racial Wealth Gap

The undersigned consumer and civil rights organizations appreciate the opportunity to submit comments on the Consumer Financial Protection Bureau’s (CFPB or Bureau) 2020 Supplemental Notice of Proposed Rulemaking (supplemental proposed rule) on debt collection. As organizations dedicated to eliminating abusive financial practices – particularly focused on communities of color and low- to moderate-income consumers – we are deeply concerned about...
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Comment Letter
Debt Collection & Settlement

Additional Testing of the Validation Notice is a Necessary Part of the CFPB’s Debt Collection Rulemaking

Additional Testing of the Validation Notice is a Necessary Part of the CFPB’s Debt Collection Rulemaking

We support the CFPB’s decision to conduct additional testing of the validation notice it has proposed and agree that such research is a necessary part of the Bureau’s debt collection rulemaking. As discussed below, we believe that the utility of the research will depend upon: the criteria used to select individuals to participate in the research; and the scope of...
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Comment Letter
Debt Collection & Settlement

Congress Should Pause Debt Collection and Protect Assets, Including Stimulus Checks During COVID-19 Crisis

Congress Should Pause Debt Collection and Protect Assets, Including Stimulus Checks During COVID-19 Crisis

Even before the onset of the COVID-19 pandemic, US household debt was on the rise, reaching over $14 trillion. While much of this debt stems from mortgages, a growing amount stems from non-mortgage consumer debt, including student loans, medical debt, credit cards, installment loans, and auto loans. With the number of Americans facing unemployment, lost wages, and depleted savings due...
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Policy & Legislation
Debt Collection & Settlement

Debt Collection Rule Should Not Perpetuate Abusive Practices And Widen The Racial Wealth Gap

Debt Collection Rule Should Not Perpetuate Abusive Practices And Widen The Racial Wealth Gap

The undersigned consumer and civil rights organizations appreciate the opportunity to submit comments on the Consumer Financial Protection Bureau’s (CFPB or Bureau) proposed rule on debt collection. As organizations dedicated to eliminating abusive financial practices – particularly focused on communities of color and low- to moderate-income consumers – we are deeply concerned about the proposed rule’s content and impact. Without...
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Comment Letter
Debt Collection & Settlement

Strengthen The Proposed Debt Collection Rule To Fulfill The CFPB’s Obligation To Faithfully Implement The Fair Debt Collection Practices Act (FDCPA)

Strengthen The Proposed Debt Collection Rule To Fulfill The CFPB’s Obligation To Faithfully Implement The Fair Debt Collection Practices Act (FDCPA)

The 232 undersigned consumer, civil and human rights, labor, community and legal services organizations from all 50 states and the District of Columbia submit the following comments on the Consumer Financial Protection Bureau’s (CFPB or Bureau) proposed debt collection rules. The rule as proposed does far more to protect abusive debt collectors than consumers. The proposal opens consumers up to...
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Comment Letter
Debt Collection & Settlement

Poll: Strong Bipartisan Opposition Among Voters to Major Components of the Proposed New CFPB Debt Collection Rule

Poll: Strong Bipartisan Opposition Among Voters to Major Components of the Proposed New CFPB Debt Collection Rule

Earlier this year, the Consumer Financial Protection Bureau proposed new rules for debt collectors. The proposal authorizes, for the first time, a specific number of communication attempts to collect past-due debts. The rules also authorizes new means of communicating with people to collect debts, such as email and direct messaging, and expands the ability to collect time-barred debt. Download the...
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Research
Debt Collection & Settlement

The Case Against Illegal Debt Collection

The Case Against Illegal Debt Collection

Although debt collection plays an important role in how credit markets function, it can also expose American households to unnecessary abuses, harassment, and other illegal conduct. Unscrupulous debt collectors sometimes use incorrect data and illegal collection tactics to file lawsuits or pressure consumers into making payments on debt they may not owe. Even worse, millions of consumers become aware of...
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Research
Debt Collection & Settlement

Debt By Default: Debt Collection Practices in Washington 2012–2016

Debt By Default: Debt Collection Practices in Washington 2012–2016

Debt collection efforts around the United States rely heavily on litigation to collect past due debt. The ease of obtaining default judgments and garnishment orders has led debt buyers to use the courts as a critical tool for extracting payments from consumers, despite the lack of documentation showing that the consumer actually owes the amount claimed. Debt buyers are skilled...
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Research
Debt Collection & Settlement

Low-Income Oregonians Report Heavy Debt Levels with Long-Term Consequences

Low-Income Oregonians Report Heavy Debt Levels with Long-Term Consequences

By the Stop the Debt Trap Alliance of Oregon, in partnership with the Center for Responsible Lending (CRL) In 2006, when Oregonians noticed the devastating impact payday and car-title lending was having on their communities, a coalition pushed for a change in the state laws, bringing new consumer protections to hundreds of thousands of people in the state. This example...
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Research
Debt Collection & Settlement
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