For the first time in nearly forty years, the federal government is preparing to strengthen the rules that regulate how consumer debts are collected. On Thursday, the Consumer Financial Protection Bureau (CFPB) announced its intention to significantly overhaul the rules governing debt collectors.
New Rules Governing Debt Collectors
Under the newly proposed rules, debt collection companies will have to more fully document the debt they are trying to collect, make it clear how a consumer can dispute the debt, and observe state statutes of limitations that bar them from legally pursuing older debts. These are all safeguards that, according the CFPB, that debt collectors routinely ignore.
The rules would also stop the repeated harassment of consumers. Collectors would be barred from trying to contact people more than six times in a week. And, after a debtor dies, the collectors would have to wait 30 days before contacting family members about paying the debt.
These new proposals are welcome news to millions of Americans. According to a recent study by the Urban Institute, some 77 million people — roughly one in three adults with a credit report — have a delinquent debt in collections. The Consumer Financial Protection Bureau receives far more complaints about debt collection than any other issue — more than 7,000 a month, on average — and 40 percent of them are about collection attempts on debts the customers say they do not owe.
If are being harassed by debt collectors, please contact a local Bond & Botes office. We have helped hundreds of clients successfully sue debt collectors that break the law. We understand the laws that protect you from debt collectors. We can help you!
Don Lawson is the Office Manager of the Bond & Botes Law Offices location in Knoxville, Tennessee. He holds degrees in both Accounting and Finance that he’s put to use analyzing complex business bankruptcy cases for the firm. Read his full bio here.