Saturday, February 18, 2012
Debt collecting companies will be regulated in a manner similar to credit reporting companies
The “new” Consumer Financial Protection Bureau (CFPB) will issue rules that propose that debt collection companies be regulated with accountabilities similar to those of credit reporting companies.
The Reuters story is here.
The debt collection industry, where I worked for a while in 2003 and where I have interviewed in the past, has more variable business models, and companies that actually buy debt seem to be creating more problems for consumers.
Reuters is also reporting on a problem of “old mortgages” that are supposed to go away with refinancing but don’t. Some people have received foreclosure notices when they did not even know they had mortgages.
That story is here.
A related problem back in the 1990s had been unqualified assumptions, which could lead to litigation against previous owners who had sold homes, not realizing they were still liable.