Federal Government Proposes Huge Overhaul of Debt Collection Industry

The federal Consumer Financial Protection Bureau (CFPB) recently proposed a significant overhaul of the multibillion dollar debt-collection industry.  The regulations are intended by the CFPB to provide more rights to consumers, while making it much tougher on debt collectors.  Some of the proposed regulations include restricting collectors from calling numerous times a day, and requiring them to have more documentation on what’s owed.  The proposed regulations would also provide people with more of an opportunity to dispute their bills.  The new proposals are likely to be resisted strongly by the debt-collection industry.  Once formal rules are written, likely to occur later this year, the public will have 90 days to comment before the rules will go into effect.

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