Uncle Sam May Be Poking His Nose Into Debt Collections, Credit Reporting
Submitted by: I-Newswire
2012-03-20 13:35:27
Debt collectors are currently unregulated by the federal government, but this could all change soon.
California (OPENPRESS) March 19, 2012 - Debt collectors are currently unregulated by the federal government, but this could all change soon.
The Consumer Financial Protection Bureau is asking for changes that would allow Uncle Sam to regulate large debt collectors and credit reporting companies as a guarantee that consumers get a fair shake.
Richard Cordray, director of the CFPB, said credit reporting agencies like Experian, Equifax and TransUnion are a "murky unknown" for most people, adding that people typically don't get to choose whether these agencies keep track of their credit histories. And consumers not having a say in the matter can make their credit report even more of a question mark for most people.
One of the biggest complaints about credit bureaus is that they take entirely too long to fix credit report mistakes. Each of the three credit bureaus has about 200 million consumers on file - that's a lot of reports to keep up with. But even so, consumers deserve to receive these adjustments in a timely manner.
As for the debt collectors, for many consumers, dealing with them has been a complete nightmare. Debt collection is the No. 2 consumer complaint to the Federal Trade Commission, second only to identity theft.
Having Uncle Sam's hand in the mix, say the experts, would improve things tremendously, because it is apparent that so many debt collectors are operating in an illegal or amoral manner.
Officials at the CFPB hope that sending examiners to check out debt collectors and credit reporting agencies on a regular basis will not only keep them operating in a more forthright manner, but will also help to spot problems and fix them before they get out of hand.
Those included in this special federal oversight would include credit reporting agencies, as well as those that provide specialty services to banks, such as tracking bounced checks, along with debt collectors that have more than $10 million in annual revenue from collection activities.
Knowing that Uncle Sam is looking out for the average consumer will no doubt be a great comfort to most - since most people dealing with their credit reports and/or with debt collectors are at a loss for help.
But even with the feds poking about in credit reports and debt collections, it still pays to be smart with your money and your credit on the front end. Manage both wisely, and you can rest assured you won't have to worry what Uncle Sam's up to.
