Who regulates consumer debt industry in America?
The Consumer Financial Protection Bureau (CFPB) helps consumers by providing educational materials and accepting complaints. It supervises banks, lenders, and large non-bank entities, such as credit reporting agencies and debt collection companies.
The FTC enforces the Fair Debt Collection Practices Act (“FDCPA”), which prohibits deceptive, unfair, and abusive debt collection practices.
- The National Highway Traffic Safety Administration (NHTSA) ensures vehicle safety standards.
- The Consumer Product Safety Commission (CPSC) addresses product safety hazards and recalls.
- The Food and Drug Administration (FDA) monitors and regulates food and drug safety.
Consistent with applicable law, we securely share complaints with other state and federal agencies to, among other things, facilitate: supervision activities, enforcement activities, and. monitor the market for consumer financial products and services.
The CFPB also has the authority to oversee nonbank compliance, regardless of size, in certain specific markets: mortgage companies (originators, brokers, and servicers, as well as providers of loan modification or foreclosure relief services); payday lenders; and private education lenders.
The “777 Rule” states that debt collectors may attempt to contact a consumer about a single debt up to seven times in seven days. Phone numbers do not matter; it's the number of debts that matters.
Debt collectors cannot harass or abuse you. They cannot swear, threaten to illegally harm you or your property, threaten you with illegal actions, or falsely threaten you with actions they do not intend to take.
Select federal consumer protection statutes, which apply nationwide, include the Federal Trade Commission Act (“FTC Act”), the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”), the Gramm-Leach-Bliley Act (“GLB Act”), the Truth in Lending Act (“TILA”), the Fair Credit Reporting Act (“FCRA”), ...
We protect consumers from unfair, deceptive, or abusive practices and take action against companies that break the law.
The FTC's Bureau of Consumer Protection and the CFPB are two different agencies but have similar missions. The CFPB's purpose is to ensure that all consumers have access to markets for financial products and services and that the markets for these are fair, transparent, and competitive.
What is the most common complaint to the CFPB?
The three most common issues reported to the CFPB related to credit reporting were incorrect information on credit reports (30.8% of complaints), improper use of credit reports (27.6%), and problems with a credit reporting agency's investigation into a complaint (21.9%).
The CFPB supervises a range of companies to assess their compliance with federal consumer financial laws. We have supervisory authority over banks, thrifts, and credit unions with assets over $10 billion, as well as their affiliates.
When a financial institution, individual, or other entity subject to the CFPB's authority breaks the law, the CFPB may take enforcement action against them. In certain cases, the CFPB may partner with other federal, state, or local agencies to investigate the wrongdoing and coordinate the enforcement action.
Sec. 1025 authorizes CFPB to supervise those entities that are large insured depository institutions and credit unions with more than $10 billion in total assets and all their affiliates (including subsidiaries), as well as service providers for such entities. Sec.
Rohit Chopra is Director of the Consumer Financial Protection Bureau.
The Consumer Financial Protection Bureau is a 21st century agency that implements and enforces Federal consumer financial law and ensures that markets for consumer financial products are fair, transparent, and competitive.
If you are struggling with debt and debt collectors, Farmer & Morris Law, PLLC can help. As soon as you use the 11-word phrase “please cease and desist all calls and contact with me immediately” to stop the harassment, call us for a free consultation about what you can do to resolve your debt problems for good.
Don't provide personal or sensitive financial information
Never give out or confirm personal or sensitive financial information – such as your bank account, credit card, or full Social Security number – unless you know the company or person you are talking with is a real debt collector.
State | Written | Oral |
---|---|---|
Alaska | 6 years | 6 |
Arizona | 5 years | 3 |
Arkansas | 6 years | 3 |
California | 4 years | 2 |
Even if you owe money, debt collectors aren't allowed to threaten, harass, or publicly shame you. You have the right to order a debt collector to stop contacting you, and they must comply. If there's a mistake, and you really don't owe the debt, you can take steps to remedy the error.
What is a drop dead letter?
You have the right to send what's referred to as a “drop dead letter. '' It's a cease-and-desist motion that will prevent the collector from contacting you again about the debt. Be aware that you still owe the money, and you can be sued for the debt.
Ignoring a Debt Collector's Calls and Letters When You're Judgment Proof. If you're not employed or making very little, and you don't have any valuable assets a debt collector can take, you likely don't need to worry about repaying your debts. Debtors like you can ignore creditor calls because you're "judgment proof."
Consumer protection law is made up of a large patchwork of Federal and state laws governing everything from products like cosmetics and medicine to services like lending practices.
The Federal Trade Commission Act is the primary statute of the Commission. Under this Act, as amended, the Commission is empowered, among other things, to (a) prevent unfair methods of competition and...
States use agencies and statutes to enforce consumer protection and may expand on federal laws, with some being more pro-consumer than others. In finance, consumer protection laws seek to prevent predatory lending, housing discrimination, securities fraud, privacy violations, and other unethical practices.
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