When the Consumer Financial Protection Bureau was created, it was tasked in part with receiving complaints from American consumers about the debt collection process. Just as the Food and Drug Administration receives complaints about unsafe food and medications, the National Highway Traffic Safety Administration receives complaints about unsafe vehicles and the Consumer Product Safety Commission receives complaints about unsafe consumer products, the CFPB serves as the nation’s “ear” when it comes to complaints about debt collection.
These complaints can help to inform the CFPB’s work and its recommendations for reform. As a result, these complaints serve a vital role in the evolution of American debt collection practices. Recently, the CFPB released information about the most pressing complaint it continues to receive from American consumers. According to the agency, the number one complaint that consumers voice about debt collection is that the collection system itself is a hotbed of inaccuracies, misinformation, harassment and injustice.
A report released by the CPFB indicates that many consumers are complaining about unacceptable debt collection practices. These individuals report that debt collectors have sworn at them and called them unacceptable names. They also report that their medical bills are inaccurate or that insurers refuse to resolve some of them.
It is a consumer’s responsibility to ensure repayment of debt. However, consumers are entitled to fair and respectful treatment by debt collectors. The CFPB’s report indicates that more reform is needed in order to ensure that consumers are treated in accordance with existing laws and with sound policies in general.
Source: Palm Beach Post, “Top consumer outrage? Debt collection for medical, other bills,” Charles Elmore, Nov. 6, 2014
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