Consumer Financial Protection Bureau
![Consumer Financial Protection Bureau]()
General Role: The Consumer Financial Protection Bureau (CFPB) is a federal agency. This agency protects consumers from deceptive, abusive and unfair business practices.
There are many companies (including collection agencies) that operate ethically. However, there are also plenty of debt collectors out there who are willing to bend, if not break, the rules.
One protection you have against this is the Consumer Financial Protection Bureau (CFPB). This federal agency regulates and takes action against unethical companies. While not the primary enforcer of the Fair Debt Collection Practices Act (FDCPA), they do address abusive debt collection practices.
In this article, you will learn the role of the CFPB when it comes to illegal debt collection practices. Read on to learn how the CFPB can assist you when dealing with an unethical collection agency.
What is the Purpose of the CFPB?
The CFPB is a relatively new federal agency founded in 2011. Broadly speaking, the CFPB advocates and protects consumers’ rights against illegal business activities. These protections extend to consumers dealing with a collection agency.
When it comes to consumer debts, the CFPB is available to investigate and address issues with collection agencies. This includes any issues of harassment, deception or other abusive debt collection practices. This includes a variety of personal consumer debts including:
- Credit Cards
- Student Loans
- Mortgages
- Medical Debt
- Past-due Rent
- Car Loans
A separate agency, the Federal Trade Commission (FTC), handles the enforcement of the FDCPA. However, the CFPB can still address illegal debt collection behavior addressed in the FDCPA.
How Does the CFPB Protect Consumers from Collection Agencies?
Their primary goal is to prevent abusive and harassing debt collection practices. As a result, they have created specific rules to prohibit this behavior. For example, the CFPB has passed certain debt collection rules.
These rules provide specific requirements on the following:
- How a collection agency must communicate with you. This includes specific rules on how frequently a collection agency can call you and the use of social media. There are also requirements for leaving limited-content messages on voicemails.
- Required Information. The debt collector must provide certain information about your debt through a validation notice.
- Reporting a Debt to a Credit Reporting Company. A collection agency must follow certain steps before they report your debt to a credit reporting company.
In addition, the CFPB allows consumers to submit complaints about illegal debt collection practices. The CFPB will investigate these complaints and take action where necessary. The CFPB is constantly researching and monitoring consumer issues. In doing so, the CFPB determines if additional rules or enforcement are necessary.
Is the CFPB All You Need?
No, it is just one of many tools you can use to address a collection agency violation. In fact, for most situations, you will need to do more than submit a complaint to the CFPB. Here are a few other ways to address a violation of the FDCPA.
- Address the Collection Agency Directly. Consider sending a written letter to the collection agency addressing the violation. Do so by certified mail to have proof of delivery.
- Notify the FTC. You can submit a complaint to the FTC since they handle the enforcement of the FDCPA.
- Propose a Debt Settlement. With proof of a violation, you may convince a collection agency to settle your debt at a discount.
- File a Lawsuit. If the behavior is ongoing, consider filing a lawsuit. The court can order them to stop and pay you for any damages you suffer.
If your situation involves a debt that is not yours, you must file a written dispute. To get the full benefits of the FDCPA, send your dispute within 30 days of formal notice.
Conclusion
The CFPB is a great resource if you are dealing with an aggressive collection agency. The CFPB can investigate the situation and help you put a stop to any illegal behavior.
Of course, the CFPB is one of many tools in your arsenal. If you want to take additional action, you can start by scheduling a consultation with a consumer rights attorney. They can help you develop a complete plan for addressing any collection agency violations.
Additional Resources