Call for a Free Initial Consultation
Review Us
Creating Personalized Solutions We use our skill and experience to help each client secure the best available resolution to their situation.

CFPB proposes new rules on debt collection

The Consumer Financial Protection Bureau was created under the Dodd-Frank reform bill passed in the wake of the 2008 financial meltdown. The CFPB's mission is to investigate and prevent predatory lending and debt collection practices similar to those that resulted in the sub-prime mortgages that triggered the meltdown. As part of that mission, CFPB also proposes new rules to regulate debt collection.

Many debtors are plagued by overzealous debt collection agencies. In fact, some people might be troubled years after they discharge a particular debt because many of these companies do not conduct due diligence investigations into the debts they collect. They harass people with multiple phone calls, obfuscate the methods with which people can contest debts and are vague on details regarding the debt.

In short, debt collection agencies can harass people into paying without disclosing details or permitting them an easy path to contest the debt.

The CFPB looks to change those practices by enacting stronger consumer protections and limiting the contact that debt collectors can make with consumers. The CFPB is also considering rules to require greater transparency regarding the collection practice, details of the debt and methods with which people may contest it.

If you are considering bankruptcy, you may want to speak to a bankruptcy lawyer. Declaring bankruptcy, once you understand the process, is relatively straightforward. However, it is still very overwhelming. Depending on the chapter that you file under, you may even still be liable for some debts. The earlier you consult with a lawyer, the sooner you can begin to understand the process.

No Comments

Leave a comment
Comment Information

Tell Us About Your Legal Issue

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

5885 N. Wayne RD | The | Smith | Law Offices, P.C. | 734.729.4465

The Smith Law Offices, P.C.
5885 N. Wayne
Westland, MI 48185

Phone: 734-729-4465
Fax: 734-729-4498
Map & Directions