"The CFPB was created to fill a vacuum in consumer protection and to tame the Wild West mentality of many non-banking financial institutions. Its proposed oversight of the largest debt collectors and credit reporting agencies is an important first step in
Stamford, CT (PRWEB) February 23, 2012
Consumer attorney Sergei Lemberg announced his full support of the Consumer Financial Protection Bureau's proposed rule to gain oversight of the debt collection and credit reporting industries. Lemberg, who has been targeted by the debt collection industry as one of the "most active" consumer attorneys in the nation, says, "The CFPB was created to fill a vacuum in consumer protection and to tame the Wild West mentality of many non-banking financial institutions. Its proposed oversight of the largest debt collectors and credit reporting agencies is an important first step in helping Americans who have been victimized by these industries."
According to the CFPB, 30 million consumers are currently in collection, and four percent of debt collection agencies account for 63 percent of debt collection revenues. Lemberg notes that debt collection agencies of all sizes run roughshod over consumers, routinely violating the Fair Debt Collection Practices Act and the Fair Credit Reporting Act. "The economy tanked, housing prices plummeted, and unemployment skyrocketed. An increasing number of Americans simply are not able to pay their bills," Lemberg says. "In response, debt collectors often curtail traditional collection methods and turn to a business model that abuses the taxpayer-funded court system to obtain judgments against unsuspecting consumers."
The CFPB notes that the proposed rule would result in agency oversight of approximately 30 credit reporting agencies. Lemberg says that many Americans who are already on the sidelines of the banking system are further disenfranchised by credit report resellers and specialty credit reporting agencies. "Bad and faulty credit reports can make it virtually impossible for consumers to find housing, obtain employment, or qualify for loans, sending them into a downward financial spiral from which they can't recover," he says. "CFPB oversight would help weed out the bad players, and give consumers the level playing field they deserve.
While Lemberg doesn't believe that the CFPB's expanded oversight will solve debt collection and credit reporting abuse, he says the proposed rule is a step in the right direction. "I urge consumers and consumer attorneys to add their voices to mine during the public commenting period, and support adoption of the proposed rule."
About Lemberg & Associates, LLC
The attorneys at Lemberg & Associates, LLC practice in New York, Connecticut, Massachusetts, Texas, Maine, New Hampshire, New Jersey, Ohio, Nevada, Arizona, Colorado, North Carolina, Pennsylvania, California, Maryland, Illinois, and Washington, D.C. Sergei Lemberg can brief you about the Fair Debt Collection Practices Act, the Fair Credit Reporting Act, remedies available to consumers who are victims of debt collector harassment, and other relevant issues.