Fair Debt Collection

The Consumer Financial Protection Bureau, a branch of the federal government, proposed a massive overhaul of the debt collection industry.   If you have debt that you cannot pay, you have been contacted many times by bill collectors, and at all times of the day and night.  Quite often, this forces people into filing either Chapter 7 bankruptcy or Chapter 13 bankruptcy.  Debtors complain to state and federal agencies about unfair or deceptive practices by collection agencies.  The new proposed rules would make debt collectors go through extra steps to prove that a debt is valid before beginning collections.  The debt collectors would be limited to no more than six communication attempts per week, and the hours of approved contact would be more limited.  If a consumer disputes the debt’s validity, the proposals would require the collectors to provide clear and easy way for the consumer to challenge the debt.  Some consumer groups do not think these proposals go far enough, but at least it is a start.

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