Receiving Wide Coverage ...
Common complaint: Debt collectors, watch out – more oversight is coming. The Consumer Financial Protection Bureau released an outline of new rules for third-party debt collectors Thursday morning. Consumers have submitted far more debt-collection complaints to the agency's database than on any other issue.
Under the proposal, debt collectors will have to be more careful to document the debt they're collecting and make it clear that borrowers can dispute the issue, among other provisions. The industry and consumer advocates alike have been waiting for agency action on the issue for years, as the CFPB began laying the groundwork for new rules.
"Debt collectors say that while they welcome the clarity of new rules, they also are concerned that stringent requirements would raise their compliance costs, cut their collections and threaten the survival of many small companies that make up the bulk of the industry," according to the Wall Street Journal.
The New York Times tells the story of Susan Macharia of Buena Park, Calif. A collector started mistakenly garnishing $800 per month from her wages in January over a $10,000 debt that was not hers.
"There was so much financial stress, and emotional stress — I had never dealt with anything like this before. And I knew I hadn't done it!" she told the Times.
"The proposed regulations are aimed at making it much harder for debt collectors to pursue people like Ms. Macharia," the paper says.
Stiff competition: Big banks are losing top workers to boutique firms. In the latest example, a top dealmaker at JPMorgan Chase has decamped to LionTree, a smaller advisory firm focused on media and telecommunications. Financial Times, New York Times
New York Times
Shell game: Luxury-home purchases made through shell companies are going to be facing greater scrutiny in certain regions of the country, the Treasury Department announced Wednesday. The effort is part of a government-wide plan to prevent money laundering and other illicit activities that take place through shell companies.