The Consumer Financial Protection Bureau on Wednesday warned about the risks of the online debt sales, alleging that sensitive personal and financial information is available in some instances to any visitor to a debt marketplace website.
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Richard Cordray, director of the Consumer Financial Protection Bureau, speaks at a Senate Banking Committee hearing in Washington, D.C., U.S., on Tuesday, Jan. 31, 2012. Republican lawmakers may escalate their criticism of the U.S. over estimates that its first rule would require nearly 7.7 million employee hours of work to comply. Photographer: Andrew Harrer/Bloomberg *** Local Caption *** Richard Cordray
Andrew Harrer/Bloomberg
The CFPB released a survey of consumers' experiences with debt collectors and a report on the risks of online debt sales. The survey found that 27% of consumers contacted by debt collectors feel threatened and 40% of consumers said debt collectors continued to contact them despite being asked to stop.
In July, the CFPB released a plan to overhaul the debt collection industry, including limiting collection attempts to six per week and requiring confirmation of a debt before a collector contacts a consumer.
But the bureau held off on issuing a plan at that time to regulate banks, credit card companies and other first-party creditors that are not subject to the Fair Debt Collection Practices Act.
“The survey today casts light on troubling problems in the debt collection industry,” CFPB Director Richard Cordray said in a press release. “More than one-in-four consumers report feeling threatened by a debt collector, and a majority of those contacted about debt say the calls persist even after requests to stop." The CFPB receives more consumer complaints about debt collection than any other financial product or service.
Following a massive earnings miss three months ago, the bank-technology seller on Tuesday reported signs of stability and an embrace of new payments and financial services technology.
The iOS technology enables payments without requiring merchants to add extra hardware. The card network is embedding the option into a broader suite of merchant technology to bolster its services strategy amid competition from Mastercard and fintechs like Block and Stripe.
A housing bill that already passed the Senate cleared the House Monday evening, but included bipartisan community banking provisions that have already raised objections in the upper chamber.
The Government Accountability Office was tasked with investigating the Consumer Financial Protection Bureau's stop-work order, but CFPB officials refused to meet with or provide information to Congress' investigative arm.
