A recent report released by the Consumer Protection Bureau reveals that millions of U.S. citizens share negative feelings about the debt collectors. Instead of describing this relationship as civilized and professional, people are admitting that debt collectors appear to be more menacing than expected. The report is also exposing the fact that some debt collectors are putting personal information in jeopardize. As a consequence, the debt collectors round up a complete image of abusing authorities.
This report comes as a supportive document in the wake of CFPB efforts to restructure the collection industry. There are going to be decided new rules which will probably update this field to modern times. The complaints that come from the public opinion don’t represent a novelty for the Consumer Bureau. The authorities have been trying to mitigate the situation for a long time now. The only plausible solution seems to be to appeal to the power of the law.
There are several common specific complaints that frame debt collectors as abusing authorities. For instance, business owners reported that the collectors give them even 40 calls a day regarding a credit card debt. This is still a form of harassment that shouldn’t be abused by authorities. Moreover, other citizens receive notes from debt collectors regarding a bill that they do not owe.
Even though the debt collection needs to be supported by persistent agents, some of their actions may linger on the limit between professionalism and abuse. Last fall, a court declared the business form of such an agency as against the constitution. However, the agency survived as the court allowed it to continue if there is a remedy in place. The president can fire the director, or the agency gains its independence by running as a commission.
The survey speaks volumes of an unregulated system. One of the major findings was that collectors fill in false consumer data as they sell the debts to debt collection companies. This is why 53% of consumers receive wrong information about their debt. Almost 36% of respondents reported that they were contacted at uncivilized hours, while 40% of them complained of persistence even though they asked collectors to cease contact. The upcoming rules will concern the debt collectors’ conduct. The agents need a clear protocol on how to verify records and contact consumers.
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