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MAKE COLLECTIONS GREAT AGAIN- FDCPA

    · ARM Industry,Debt Portfolios,Debt Collection 101,Debt For Sales,FDCPA

    We find that the CFPB is currently structured to collect complaints from consumers and investigate them. To ensure these investigations are done in a fair, unbiased way we propose modifying this structure by adding provisions for falsification of reports. In addition, modern methods of communication such as texting or social media should be included so there can be an easier flow between consumer and collector (FDCPA). Finally any contradictions found within collections law need clarified to help collectors avoid making difficult decisions on who they have cases against.

    1. Remove or restructure the consumer board- If the CFPB remains intact, it must be modified so that only legitimate complaints are allowed (and investigated), with repercussions against consumers for filing knowingly false reports. Complaints and responses should be at the affidavit level so that any falsification rises to the level of perjury.

    2. Rewrite the FDCPA - so that it meets modern methods of communication including text, social media, email, and cell phone contact.

    3. Clarify any and all contradictions in collections law -  so that collectors are not forced to choose between two violations in legitimate contact with legitimate debtors. A trade-off here would be that all levels of the law would be clear and distinct with no contradictory action, and an increase in penalties for violators.

    4. Rewrite the TCPA debt collectors- have pre-existing relationships with debtors, and an automated call to a cell phone from a legitimate debt collector regarding a legitimate debt is explicitly allowed by the TCPA.

    5. As with the FDCPA- the TCPA may need to be re-written from scratch with modern technology and communication in mind.

    6. Update the FDCPA- so that it allows for information security methods to be adaptable for modern business practices, such as telework. Currently, it favors large businesses with a physical location and localized server systems.

    7. Generally simplify and reduce the tax burden on small businesses- Too often loopholes and tax breaks favor larger businesses and allow them more control over a single industry, hampering small business operations.

    8. Loosen regulations in buying and selling of debt- and increase penalties for creditors and fake collectors stealing information for identity theft and false debts.

    Conclusion: The Consumer Financial Protection Bureau (CFPB) is currently structured to collect complaints from consumers and investigate them. To ensure these investigations are done in a fair, unbiased way we propose modifying this structure by adding provisions for falsification of reports. In addition, modern methods of communication such as texting or social media should be included so there can be an easier flow between consumer and collector (FDCPA). Finally any contradictions found within collections law need clarified to help collectors avoid making difficult decisions on who they have cases against. Reach out if you would like more information about the changes that might take place with the CFPB's current setup!