CFPB: Debt Collectors Are On Notice

Good news — the Consumer Financial Protection Bureau has announced that it will begin supervising debt collection agencies starting on January 2, 2013.

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) published a rule today that will allow the agency to federally supervise the larger consumer debt collectors for the first time. The CFPB also released the field guide that examiners will use to ensure that companies and banks engaging in debt collection are following the law.

“Millions of consumers are affected by debt collection, and we want to make sure they are treated fairly,” said CFPB Director Richard Cordray. “Today we are announcing that we will be supervising the larger debt collectors in the market for the first time at the federal level. We want all companies to realize that the better business choice is to follow the law — not break it.”

I consider the creation of the CFPB to be one of the greatest achievements of the past four years, no thanks to the Republicans who fought tooth and nail to kill it.

The agency went without a director for over a year while Republicans blocked confirmation of Elizabeth Warren. The Republicans demanded that the agency be rendered toothless, ineffectual, and stripped of funding before they would confirm anyone as its director. President Obama later broke their blockade with a recess appointment of Richard Cordray, the former Attorney General of Ohio.

Perhaps it’s poetic justice that blocking Elizabeth Warren as the director of the bureau may end up costing Republican Senator Scott Brown his seat.

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  • gescove

    It will be poetic justice indeed when Senator Warren is sworn in.

    • http://drangedinaz.wordpress.com/ IrishGrrrl

      Hehe I will be celebrating, fer sure

  • Username1016

    People always claim that conservatives take a realistic view of human nature, while liberals are wide-eyed naifs who think the best of everyone. WTF? It’s LIBERALS who keep fighting for regulations, because we know how people with economic power behave — the greed, the sneaky underhanded dealings, the callous unconcern with other people’s lives. From credit card companies to Marcellus Shale frackers. Yay, CFPB!

  • trgahan

    Got ta enjoy the CFPB while it lasts. We all know it will be dismantled within the first minute of the next Republican presidency.