CFPB Releases Report on Debt Collection Practices

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The CFPB releasedreport summarizing the recent complaints of consumers in connection with debt collection practices. The report covered complaints that the CFPB received from July 10, 2013 through December 31, 2013. The report notes that the top three complaints related to attempts to collect debts not owed, communication tactics and taking or threatening to take illegal action. For example, many consumers complained about being called about someone else’s debt. The report also notes that the CFPB followed up directly with debt collectors on the complaints, referred the complaints to other regulatory agencies, found the complaints to be incomplete or the complaints are pending with the consumer or the CFPB. The report also highlights consumer complaints that were submitted to the FTC. The top three categories submitted to the FTC include repeated calls to consumers, misrepresentations of the debt owed and false threats of illegal or unintended acts.

IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this informational piece (including any attachments) is not intended or written to be used, and may not be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

Topics:  CFPB, Debt Collection, Predatory Lending

Published In: Antitrust & Trade Regulation Updates, Consumer Protection Updates, Finance & Banking Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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