Urging the CFPB to End Abusive Debt Collection Tactics
An analysis of 75,000 complaints filed illustrate why a strong rule is crucial
A statement on today’s release of the Consumer Financial Protection Bureau’s preview of its regulation of the debt collection industry.
From LeeAnn Hall, co-executive director of People’s Action Institute:
“We’re encouraged to see the Consumer Financial Protection Bureau take steps to end aggressive and abusive debt collection practices and protect consumers from the often illegal activities of debt collectors.
An analysis earlier this year by the Alliance for a Just Society, now People’s Action Institute, showed clearly that debt collectors routinely harass people, some who don’t even owe debts, solely to increase their profits.
The report, Unfair, Deceptive & Abusive: Debt Collectors Profit from Abusive Tactics, analyzed a two-year sample of 75,000 consumer complaints filed with the CFPB about debt collection practices. The complaints paint a heartbreaking picture of why a strong rule is crucial.
Debt collection is a $13 billion industry in the U.S. The 15 companies with the most debt collection related complaints in the database have together spent hundreds of millions of dollars on federal lobbying and political contributions in the last 15 years.
They have no intention of changing their ways unless they are forced to – and we can count on them to use every tactic they can think of to fight against this rule.
We urge the CFPB to issue an airtight rule with stiff penalties for failure to comply."
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People’s Action Institute is a national organization working in 30 states for economic, environmental, racial and gender justice.