Dec 15

Recent Compliance Issues: 11/28/14 – 12/11/14


1. On 12/4/13, the Consumer Financial Protection Bureau (CFPB) announced that it has asked a federal district court to enter a consent order requiring a debt collection firm to pay a fine of $69,075 for charging consumers illegal, upfront fees for debt-settlement services they never received, and take other steps to prevent future legal violations.

If you’re in the debt collection business, let our former, Federal regulators review your business practices, policies, and procedures to ensure that you comply with applicable laws and regulations, such as The Fair Debt Collection Practices Act (FDCPA).

2. On 12/11/14, the CFPB released a report indicating that medical debt has a significant impact on consumer credit, as 43 million Americans have overdue medical debt on their credit reports. The CFPB is concerned that the systems for incurring, collecting, and reporting medical debt can create difficult challenges for consumers. To better address these challenges, the CFPB is announcing that the major consumer reporting agencies will be required to provide regular accuracy reports to the Bureau on how disputes from consumers are being handled. You can be sure that the CFPB’s focus on data accuracy will not stop at the credit bureaus; their regular examinations of both banks and non-banks will also focus on this issue.

Let our experienced, former, Federal regulators review your credit bureau reporting policies and procedures to ensure that you have taken reasonable steps to ensure accurate reporting.