Late last month, the Consumer Financial Protection Bureau released a report
citing illegal practices among some American debt collectors and so-called
payday lenders. Upon release of this report, the CFPB also announced that
it had privately reprimanded numerous payday lenders for failure to adhere to
fair debt collection practices. The agency revealed that some lenders had been making false threats,
initiating abusive phone calls and improperly disclosing personal information
about consumers in their attempts to collect payment.
The CFPB generally alerts businesses to concerns raised by consumers and,
when appropriate, directs those businesses to alter their behavior. However,
in more serious cases the CFPB may investigate businesses, may opt to
fine them and may publicly sanction those debt collectors, creditors and
payday lenders which refuse to abide by federal consumer protection laws.
In the agency’s most recent report, it noted that some payday lending
companies, credit reporting businesses and debt collection operations
are riddled with systematic flaws in regards to consumer protection and
respect issues. As a result, if you have been harassed by any of these
organizations, please understand that you are not alone.
Many Americans are unaware of the fact that the federal consumer protection
laws prohibit debt collectors and payday lenders from behaving in certain
manners. However, the law does prohibit these businesses from treating
consumers in specific ways. If it feels like you are being unduly harassed
by a creditor or a payday lender, you may benefit from speaking with an
experienced attorney who may be able to help you stop the harassment.
Source: Wall Street Journal, “
U.S. Regulator Cites Problems Among Payday Lenders, Debt Collectors,” Alan Zibel, May 22, 2014