Mortgage

CFPB proclaims nationwide crackdown on abusive debt assortment companies

The Consumer Financial Protection Bureau, in coordination with the Federal Trade Commission and more than 50 federal and state law enforcement agencies, announced nationwide crackdown on abusive debt collection practices.

The initiative announced on Tuesday, called Operation Corrupt Collector, outlines the steps taken by agencies to punish businesses for misconduct, inform consumers of their debt collection rights and help them deal with collection attempts for "phantom" debt, often on purchases Reference is made that the consumer does not make a recall.

Under the initiative to date, the FTC has filed five cases against debt collection agencies, the CFPB has filed two cases, and the Justice Department has filed three criminal cases along with the U.S. Postal Inspection Service, the CFPB said.

The announcement of the action comes one month before the CFPB plans to publish a rule updating the Fair Collection Practices Act of 1977.

"The CFPB is actively working to protect consumers from illegal actions by debt collection agencies," said CFPB director Kathy Kraninger in a press release. “We will continue to monitor the financial market and consumer complaints received to ensure that we identify and take action against debt collection agencies that violate the law. Finally, consumers should know that the Bureau's Consumer Complaint System is a resource for them to file any complaints about their experience with financial service providers. "

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