WASHINGTON (7/11/13)--Look out harmful-debt-collection-practitioners, the Consumer Financial Protection Bureau has you in its sights. On Tuesday, the CFPB issued two bulletins putting companies on notice about harmful debt collection practices, released new consumer tools to deal with problem debt collectors, and started taking complaints about debt-collection problems related to any consumer debt, including credit cards, mortgages and student loans.
In its first bulletin, the bureau explains that under the Dodd-Frank Wall Street Reform and Consumer Protection Act, debt collectors are statutorily prohibited from committing unfair, deceptive, or abusive acts or practices. The bulletin serves to clarify what such practices are.
The second bulletin serves as guidance to creditors, debt buyers, and third-party collectors about compliance with the Fair Debt Collection Practices Act and sections of the Dodd-Frank Act "when making representations about the impact that payments on debts in collection may have on credit reports and credit scores."
The CFPB also released a new tool to help consumers faced with debt-collection woes--a compilation of five letters they can use when replying to collectors: The letters may help consumers get valuable information about claims being made against them, or may help them protect themselves from "inappropriate or unwanted collection activities."
Use the resource link for more details of the CFPB's actions.