Orlando, Florida (PRWEB) January 18, 2013
As reported by the CFPB on its consumer website, http://www.consumerfinance.gov, the Consumer Financial Protection Bureau recently published a ruling that will allow the federal agency to oversee larger consumer debt collectors for the first time, at a federal level. An estimated 30 million Americans have, an average of $1,500 subject to debt collection nationwide. Because collectors report consumer collection activity to credit bureaus, it is vital that the information be accurate. When mistakes are made, consumers suffer serious consequences by being denied future credit, such as a home or auto loan.
While many KEL Credit Repair clients will benefit from bureau oversight, CFPB Director Richard Cordray expresses hopes for the ruling, stating, “Millions of consumers are affected by debt collection, and we want to make sure they are treated fairly. We want all companies to realize that the better business choice is to follow the law — not break it.”
KEL Credit Repair sees consumers every day, who have struggled with collection agencies, engaging in unethical and unscrupulous collection practices. The CFPB ruling gives KEL Credit Repair one more tool to help consumers fight unfair practices, by allowing individuals to file complaints and concerns directly.
The consumer debt collection market that will be subject to federal supervision includes companies that purchase defaulted debt and collect on the balances for themselves, companies that collect another company’s debts for a fee, and debt collection attorneys that get paid through litigation. Supervision of the collection industry will begin January 2, 2013 and will include those companies who collect over $10 million annually in consumer debt. The new regulation should affect about 175 companies, or about 60 percent of U.S. debt collectors.
KEL Credit Repair welcomes the federal oversight, as the CFPB will be monitoring collections in a number of areas related to federal consumer financial law. These include; proper required disclosures to consumers, accurate information on status of individual accounts, maintaining a consumer complaint and dispute process, and communicating civilly and honestly with consumers.