The Consumer Financial Protection Bureau (CFPB) issued a request for public comment on debt collection strategies. Their request can be found here:
https://www.federalregister.gov/articles/2013/11/12/2013-26875/debt-collection-regulation-f
What’s really interesting is that in the request for public comment, the CFPB gives several shocking debt collection industry facts. For example:
When surveyed in 2011, debt collectors most frequently sought to recover on medical and other health-related debts. In fact, debt collectors were over 15% more likely to collect on a medical debt than a credit card.
In 2010, there were over 4,000 third-party debt collectors that employed more than 140,000 people. These firms reported revenues of $11.7 billion that year. Collection law firms reported $2.4 billion in collection revenue in 2011.
The Federal Trade Commission issued a debt buyer report in 2013 which found that debt buyers did not verify almost 50% of disputed debts — failing to comply with their obligations under the law.
Read the full report here: https://www.gpo.gov/fdsys/pkg/FR-2013-11-12/pdf/2013-26875.pdf
At McCarthy Law PLC, we strongly believe we need consumer advocacy that rivals the collection efforts that are occurring and growing at a substantial pace in the United States. We hope to continue to defend consumer rights and help every consumer get on a secure financial path.