New Rules for Debt Collectors and Payday Loans


Consumers who feel harassed by debt collectors, or have gotten stuck in the payday loan cycle may get some relief from the Consumer Financial Protection Bureau (CFPB).

The bureau wants to set new rules for the multi-billion dollar debt collection business and the 4500 companies that operate in the U.S.  It also wants to hear complaints about the payday lending business so that it can consider new rules.

PAYDAY LOANS

If you had to turn to a payday lender for quick cash and found yourself deeper in debt, the CFPB wants to hear from you. It’s asking consumers with complaints to speak to directly to the bureau about their experiences with:

  • Unexpected fees or interest.
  • Unauthorized or incorrect charges to their bank account.
  • Payments not being credited to their loan.
  • Problems contacting the lender.
  • Receiving a loan they did not apply for.
  • Not receiving money after they applied for a loan.

 

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What’s Wrong With Payday Loans?

 

The CFPB already collected more than 5,000 complaints about debt collectors from many who feel threatened and harassed.

CFPB Director Richard Cordray said, “For decades, many consumers have reported various unacceptable practices in the debt collection industry. We want to ensure that all players in the industry are working with correct information, that consumers are fully informed, and that consumers are treated fairly and with dignity.”

Based on the complaints the bureau will consider new rules that regulate some of the bad practices including:

  • Harassing early morning, late evening and at work phone calls.
  • Calls for debts not owed.
  • Some debt collectors try to collect more than is actually owed.
  • Many debt collectors work from outdated lists and information after debtor lists are purchased from other   companies.
  • Some debt collectors make false threats about damaging a consumer’s credit, getting them fired, having property seized or sending a consumer to jail.

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Debt Collectors What are My Rights?

 

 

HERE’S HOW TO SUBMIT A COMPLAINT ABOUT PAYDAY LOANS, OR DEBT COLLECTORS

  • Go online at www.consumerfinance.gov/Complaint
  • Call the toll-free phone number at 1-855-411-CFPB (2372) or TTY/TDD phone number at 1-855-729-CFPB (2372)
  • Fax the CFPB at 1-855-237-2392
  • Mail a letter to: Consumer Financial Protection Bureau, P.O. Box 4503, Iowa City, Iowa 52244

 

Published by

Barbara Nevins Taylor

As the winner of 22 Emmy Awards and a slew of journalism honors and awards, I created ConsumerMojo.com to give you the straight story about complicated stuff. Tell us what you want to know and we'll get you the answers.