The Consumer Financial Protection Bureau will begin to take comments on how to write new regulations for the debt collection industry. These new rules could impact how often a debt can be sold and to whom it can be sold.
After the Dodd-Frank Act gave the CFPB authority to write regulations on the industry, some debt collectors and banks began preparing their systems for heightened rules and enforcement. Some debt collectors suggest even more rules are necessary.
"The reputable debt collection companies actually welcome clarification on issues like electronic communications with debtors, caller ID, data storage and sharing, and what constitutes 'unfair, deceptive, and abusive acts and practices,'" said Ronald Rubin, a former CFPB enforcement attorney who now represents large debt collection companies at the law firm of Hunton & Williams. "The upstanding debt collection companies, and there are many of them, know that the CFPB's rules will increase their compliance costs, but in the long run will make them more profitable by putting the bad actors out of business."
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