Regulators Propose Massive Overhaul of Debt-Collection Industry

The Consumer Financial Protection Bureau released a new proposal today that states that debt-collectors would no longer be allowed to call consumers multiple times a day and that consumers would have more ability to dispute their bills. Furthermore the new rules would require that “collectors […] have more documentation to prove a debt is owed, and initiate a 30-day waiting period for loans tied to someone who has recently died — halting all collection attempts from a spouse or child during that time.” These would be the biggest changes to the debt-collection industry since the Fair Debt Collections Practices Act, passed by Congress in 1977.

Though this proposal will likely face strong resistance from the debt-collection agency and its Washington allies but as for now, the changes only affect third-party agencies. The Bureau’s director said that “This is about bringing better accuracy and accountability to a market that desperately needs it.”

You can read US News’ article here.

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