CFPB Targets Debt Collectors

Saturday, February 18, 2012

The Consumer Financial Protection Bureau, created over stiff GOP opposition, is moving to bring debt collectors and the credit-rating industry under federal supervision for the first time. Debt collectors have more complaints lodged against them by consumers than any other industry, said bureau director Richard Cordray. "This oversight would help restore confidence that the federal government is standing beside the American consumer," Cordray said Thursday.

Posted by rcade at 04:05 PM | 57 COMMENTS | permalink | Comment on This Entry |

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rcade

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"This oversight would help restore confidence that the federal government is standing beside the American consumer,"

How perverted this society has become when deadbeats are considered "consumers". There use to be a time in this country when the people and companies that did not pay their bills were frowned upon and the people that were responsible and lived within their means were rewarded. Well not anymore I guess? Now it is spend,spend, spend and fuck everyone that believes you should actually pay your bills. I hope that all those dumbass that believe the debt collectors are "the bad guys" realize that the deadbeats drive up the cost of goods and services for all of us.

Not hard to imagine with the example that our "leader" has set with all his government spending not to mention his trash wife.

#1 | Posted by Dirk at 2012-02-18 04:36 PM | Reply | Flag:

Going after debt collectors? GREAT! Maybe we could start with the IRS.

#2 | Posted by adammm at 2012-02-18 04:41 PM | Reply | Flag:

How perverted this society has become when deadbeats are considered "consumers".

You don't get to be a deadbeat without first consuming something.

70% of our GDP comes from consumer spending.
Protecting the consumer = protecting the majority of the economy.
Republicans don't like it because... I'm not sure why exactly.
They probably float some ideological reason, since they can't argue against the economic reality.

#3 | Posted by snoofy at 2012-02-18 04:53 PM | Reply | Flag:

Interesting. The Feds don't want citizens to pay their debts. Why should they when the Feds do not pay their debts.

#4 | Posted by Donald at 2012-02-18 09:24 PM | Reply | Flag:

the pattern remains in this place.

that being stated... hundreds of sites, tens of thousands of recorded posts... a fleeting glimpse of a truly fabulous manifestation.

get used to the idea of this Internet thing going away. the past, present and future will vanish in a flash like a dead lightbulb.

many will be amused, others will be relegated to masturbation.

it is coming.

then the lights go out.

and other thhings too.

#5 | Posted by mmercier at 2012-02-18 09:53 PM | Reply | Flag:

If credit card companys are going to be in the business of loaning money they should insure that the consumer is able to pay back the money.

Predator credit must end.

rwd

#6 | Posted by rightwingdon at 2012-02-18 10:58 PM | Reply | Flag:

Oh not, cannot let the states handle this when the federal govt can take over another segment of our society. Does anyone here not see the problem with this???

#7 | Posted by MSgt at 2012-02-18 11:23 PM | Reply | Flag:

Germany had "Deutschland Ã¼ber alles" (Germany above all), now we are getting 'the US Federal Govt above all'. Scary as what this portends for our country in the (not so distant) future. But again the libs love and are looking forward to a all powerful federal government - which pretty much the exact opposite of what they wanted in the sixties -- go figure???

#8 | Posted by MSgt at 2012-02-18 11:32 PM | Reply | Flag:

Federal Food Police, Federal Manditory Insurance, thousands of micromanaging regulations.......

1984, whoops, 2012 is turning out to be a bad year for the Tenth Amendment to the Constitution. Let's just repeal the pesky thing and be done with it.

#9 | Posted by 3853177z at 2012-02-19 12:33 AM | Reply | Flag:

But again the libs love and are looking forward to a all powerful federal government

If that is what you believe, no wonder you despise libs. However, I think that you have more in common with libs than you are willing to admit. It is my believe that libs, like moderates and conservatives, don't like the abuse of power. The issue boils down to who is wielding the power and what does it means to be abusive?

Our economy is growing ever more complex and at a faster pace. Existing laws, narrowly cast, don't account for the new complexities. Should those complexities not fall under the jurisdiction of some authority or should it be the wild wild west? If some authority should regulate it, who should it be? States can only get involved if the entity is operating solely within their boundaries. Otherwise, it defaults to the federal government to become the regulating authority. So, its either the wild wild west or the federal government. Since you rail against the federal government, you obviously want the wild wild west?

Many people prefer the wild wild west because it gives them an opportunity to take advantage of the weak and gullible.

#10 | Posted by FedUpWithPols at 2012-02-19 05:22 AM | Reply | Flag:

If credit card companys are going to be in the business of loaning money they should insure that the consumer is able to pay back the money.

Predator credit must end.

rwd

I agree completely!

The several States used to have usury laws, but they all fell one by one in a race to the bottom.

Because setting up your predatory credit card company... CREATES JOBS!!!

#11 | Posted by snoofy at 2012-02-19 06:10 AM | Reply | Flag:

"Predatory" lending can only exist with stupid, careless prey. Then have the Feds come in and keep insulating risk and consequence, and you're just going to get more risky and careless behavior.

Moral Hazard. Look it up.

#12 | Posted by adammm at 2012-02-19 08:56 AM | Reply | Flag:

I blame the scum who run up their credit cards and then can't or won't pay their bills. Do they think that they're the Federal Government or something?

#13 | Posted by fwthom at 2012-02-19 09:00 AM | Reply | Flag:

The silly whine that the states and not the feds should regulate debt collection ignores the reality that much of this activity is done on an interstate basis. This is a necessary attempt to rein in the slime that profits on the misery of those Americans who have lost jobs and savings. Most Americans are happy to pay their bills but it does become rather difficult when their jobs are shipped overseas or they are replaced by illegal alien employees who work for a fraction of the amount American tradesmen earned. Probably we need to strictly regulate the amount of hot air that is allowed to be expelled by loud mouth right wing assholes.

#14 | Posted by danni at 2012-02-19 09:04 AM | Reply | Flag:

Yeah don't regulate debt collectors. I enjoy having 3-4 calls a day to someone I have never heard of. Then when I tell them that I have never heard of this person please take this phone # off your list they don't believe me 1 even called me a liar and told me that I was said person and that if I didn't pay they were going to put a lien on my house. I laughed and hung up. I have had this number for 1 month now and they still have not removed it from their list. I still get several calls a day. Next week I start going to the attorney general.

Yeah don't regulate those guys!

#15 | Posted by TaoWarrior at 2012-02-19 09:10 AM | Reply | Flag:

Bwaney Fwank and Cwis Dwodd said that every scumbag should own a home and if they can't pay for it blame the banks.

#16 | Posted by fwthom at 2012-02-19 09:11 AM | Reply | Flag:

Here, Danni, this is for you: www.longlongtimeago.com

"...All day long she would work, without stop or rest, scurrying back and forth from the field, collecting the grains of wheat and storing them carefully in her larder.

The grasshopper would look at her and laugh. 'Why do you work so hard, dear ant?' he would say. 'Come, rest awhile, listen to my song. Summer is here, the days are long and bright. Why waste the sunshine in labour and toil?'

The ant would ignore him, and head bent, would just hurry to the field a little faster. This would make the grasshopper laugh even louder. 'What a silly little ant you are!' he would call after her. 'Come, come and dance with me! Forget about work! Enjoy the summer! Live a little!' And the grasshopper would hop away across the meadow, singing and dancing merrily.

#17 | Posted by adammm at 2012-02-19 09:15 AM | Reply | Flag:

The proposed supervision will cover debt-collection firms that have at least $10 million in annual revenues, or about 175 firms accounting for 63 percent of the industry.

they are talking about debt-collection firms which may or may not be a credit card company, right?

It would also mean new supervision of credit reporting firms such as Experian, Equifax, and TransUnion.

these folks have gone unchecked as well. funny how we never hear much about abuse and misreporting that goes on in those firms as well.

it's the score those companies give you that determines how good you will be treated by lenders.

And they have a flawed system to calculate credit, at least as far as they treat me anyway.

my wife and I have ZERO debt. we paid off mortgage, cars, student loans, etc....and have never carried a credit card balance. we pay it off every single month and always have. we have never been late on anything in our lives.

but I'll bet that now that we have no debt......if I go get my credit score ran....it will be lower than it was before when we had all of that debt.

THAT is a flaw as it automatically makes the assumption that becuase we have no debt....then a lender just might not know how risky it might be to lend to us.

#18 | Posted by eberly at 2012-02-19 09:16 AM | Reply | Flag:

You can blame illegal aliens and outsourcing all you want for people's debt woes. But it's still your personal responsibility to be prepared and provide for yourself.

#19 | Posted by adammm at 2012-02-19 09:17 AM | Reply | Flag:

"But it's still your personal responsibility to be prepared and provide for yourself."

Unless, of course, you are a corporation. Bankers on Wall St. engineered the biggest theft in history and you worry about some poor slob who can't pay his bills because the factory where he worked for twenty years closed. UnAmerican corporatist nonsense.

#20 | Posted by danni at 2012-02-19 09:23 AM | Reply | Flag:

"but I'll bet that now that we have no debt......if I go get my credit score ran....it will be lower than it was before when we had all of that debt. "

I'll take that bet, especially since FICO is partially tied to debt-to-available-credit ratios. You might have done other seemingly innocuous things which affect the score, including closing credit card accounts, or requesting a bunch of new ones. But all things being equal, credit scores increase with paid-off bills and available credit not used.

#21 | Posted by Danforth at 2012-02-19 09:25 AM | Reply | Flag:

Danforth,

nothing odd about our spending or anything like that.

The one thing that we were informed about a few years back when we last moved was that we had a credit card I used for business that had a very small balance (and paid off every month) but it had a pretty large limit....around $20K. There were times I ran some large $$$ through that card and then was reimbursed by my company.

The mortgage guy told us that having a large available limit on a card hurt us.

don't get me wrong...our scores were still very high. In fact, we were told that they couldn't get much higher.

5 years ago, we were told that my wife's score (which was 20 points higher than mine) was the highest score the mortgage processer had ever seen in her life.

#22 | Posted by eberly at 2012-02-19 09:33 AM | Reply | Flag:

Last year I remember hearing on NPR about people selling their credit scores to others- you pay someone with a high score, they take out a card in your name or something along that line. Pretty cool (and just more proof that people can fend for themselves without mommy government fixing it for you).

#23 | Posted by adammm at 2012-02-19 09:40 AM | Reply | Flag:

Yeah my credit score sucks in a large part because I screwed it up. Well about 10 years ago after screwing it up I switched to a cash and carry lifestyle. My debt from that is gone but the credit score never went up. Since I live cash and carry I don't really care but I did loose out on one job because of it and renting a car is a pain. Fortunately I don't rent cars more than once every few years and switch jobs even less often.

#24 | Posted by TaoWarrior at 2012-02-19 09:48 AM | Reply | Flag:

"we were told that they couldn't get much higher. "

Then not much to worry about, you can practically dictate terms to the lender. No surprise, but credit scores don't mean much to folks who have little need for credit...but isn't that how it always is?

#25 | Posted by Danforth at 2012-02-19 09:49 AM | Reply | Flag:

Probably we need to strictly regulate the amount of hot air that is allowed to be expelled by loud mouth right wing assholes.

#14 | POSTED BY DANNI AT 2012-02-19 09:04 AM | REPLY | FLAG:

Let there be no doubt as to whom threatens our First Ammendment to The Bill of Rights.

#26 | Posted by Dirk at 2012-02-19 09:59 AM | Reply | Flag:

#26 | Posted by Dirk at 2012-02-19 09:59 AM | Reply | Flag: illiterate and stupid

LOL!!

The objective case of a pronoun isn't use as the subject of a sentence.
The Bill of rights amend the Constitution you stupid shitstain.

#27 | Posted by Zatoichi at 2012-02-19 10:03 AM | Reply | Flag:

use=>used

#28 | Posted by Zatoichi at 2012-02-19 10:03 AM | Reply | Flag:

Hey ZAT, it's cold down here. Why don't you and Al Whore turn up the GW thermostadt?

HaHaHaHaHaHaHaHaHa!!!

#29 | Posted by fwthom at 2012-02-19 10:18 AM | Reply | Flag:

The objective case of a pronoun isn't use as the subject of a sentence.
The Bill of rights amend the Constitution you stupid shitstain.

#27 | POSTED BY ZATOICHI AT 2012-02-19 10:03 AM | REPLY | FLAG:

Spelling Nazis and grammer police....truly the last bastion for those defending the indefensible.

Now please continue on with your trashing of our Bill Of Rights as you support the current puppet in chief.

#30 | Posted by Dirk at 2012-02-19 10:29 AM | Reply | Flag:

#26 | Posted by Dirk at 2012-02-19 09:59 AM | Reply | Flag: illiterate and stupid
LOL!!

#27 | POSTED BY ZATOICHI AT 2012-02-19 10:03 AM | REPLY | FLAG:

Just an observation...when you are still using the same word that you used on the playground, at the age of 5, to castigate someone it's best not to use the words "illiterate" and "stupid" in the same sentence as it reveals a dullness and lack of development of the mind.

#31 | Posted by Dirk at 2012-02-19 10:45 AM | Reply | Flag:

"it's best not to use the words "illiterate" and "stupid" in the same sentence as it reveals a dullness and lack of development of the mind."

Hint: it's best not to comment on anyone else's "dullness" on the same thread where you've claimed Constitutional Amendments are aimed at the Bill of Rights.

#32 | Posted by Danforth at 2012-02-19 10:53 AM | Reply | Flag:

First thing the gov should do is reform credit card spending,by doing away with the minimum monthly payments and making regulations to make the credit payment reflect a loan payment as a five year loan.
If credit card companys are going to be in the business of loaning money they should insure that the consumer is able to pay back the money.
Predator credit must end.
rwd

#6 | POSTED BY RIGHTWINGDON AT 2012-02-18 10:58 PM

I like the 5 year plan. But just how will the CC company be able to stop people from charging more than they can afford to pay back in 5 years?

#33 | Posted by glasshouse at 2012-02-19 11:00 AM | Reply | Flag:

Probably we need to strictly regulate the amount of hot air that is allowed to be expelled by loud mouth right wing assholes.

#14 | POSTED BY DANNI AT 2012-02-19 09:04 AM | REPLY | FLAG

Libs believe in free speech as long as it fits their agenda and philosophy.

#34 | Posted by glasshouse at 2012-02-19 11:04 AM | Reply | Flag:

Why is Danni such a HATER?????

#35 | Posted by glasshouse at 2012-02-19 11:04 AM | Reply | Flag:

Hint: it's best not to comment on anyone else's "dullness" on the same thread where you've claimed Constitutional Amendments are aimed at the Bill of Rights.

#32 | POSTED BY DANFORTH AT 2012-02-19 10:53 AM | REPLY | FLAG:

Of course that was not my intent at all, despite the bad grammer. I do find it a bit humorous however that our resident spelling Nazi has now come to the defense of our resident grammer police.

#36 | Posted by Dirk at 2012-02-19 11:05 AM | Reply | Flag:

"that was not my intent at all, despite the bad grammer."

My point is you don't have much room commenting on other people's intelligence. You know, the log in your eye before the speck in your neighbor's.

And it's grammar.

#37 | Posted by Danforth at 2012-02-19 11:09 AM | Reply | Flag:

How perverted this society has become when deadbeats are considered "consumers". -- #1 | Posted by Dirk

You're assuming they're really deadbeats.

#38 | Posted by Phoenix at 2012-02-19 11:11 AM | Reply | Flag:

And it's grammar.

#37 | POSTED BY DANFORTH AT 2012-02-19 11:09 AM | REPLY | FLAG:

LOL....You just can't help yourself can you? It must drive you insane to know that there are people out there who don't define their intelligence by how well they follow "the rules".

#39 | Posted by Dirk at 2012-02-19 11:15 AM | Reply | Flag:

"It must drive you insane to know that there are people out there who don't define their intelligence by how well they follow "the rules"."

On the contrary: I get a kick out of folks who want to parade their intellagince.

#40 | Posted by Danforth at 2012-02-19 11:21 AM | Reply | Flag:

On the contrary: I get a kick out of folks who want to parade their intellagince.

#40 | POSTED BY DANFORTH AT 2012-02-19 11:21 AM | REPLY |

You do know what irony is I assume? ;;)

#41 | Posted by Dirk at 2012-02-19 11:23 AM | Reply | Flag:

Here is irony....

Dirk comments on Danni attacking The First Ammendment.

zack ignores Danni's attack on The First Ammendment and picks at Dirks poor grammar.

Dirk calls Zack out for not having much creativity in his own right.

Danforth in typical Spelling Nazi fashion feels the need to jump in and impress everyone with his spelling ability....and then finds it comical that "other" people are trying to impress others with their intelligence.

Irony!

#42 | Posted by Dirk at 2012-02-19 11:33 AM | Reply | Flag:

"and then finds it comical that "other" people are trying to impress others with their intelligence."

You left out the salient part: you taking others' "dullness" to task merely minutes after looking stupid.

Typical.

#43 | Posted by Danforth at 2012-02-19 11:36 AM | Reply | Flag:

"You do know what irony is I assume?"

You do understand why I italicized "intelligence", I assume?

This is getting more comical by the minute: that whooshing sound you just heard was the whole thing zooming over your head.

#44 | Posted by Danforth at 2012-02-19 11:38 AM | Reply | Flag:

I can only assume that your task master would not let you suck his dick unless you performed perfectly as you have an allure to the rigid?

#45 | Posted by Dirk at 2012-02-19 11:41 AM | Reply | Flag:

"You do know what irony is I assume?"
You do understand why I italicized "intelligence", I assume?
This is getting more comical by the minute: that whooshing sound you just heard was the whole thing zooming over your head.

#44 | POSTED BY DANFORTH AT 2012-02-19 11:38 AM | REPLY | FLAG:

You are now being disingenuous as it was clearly stated that the irony stemed from your incessant desire to impress with your spelling ability while at the same time finding humor in "others". It had nothing to do with your ability to spell a word as we of course already know. I find it funny that you can't just admit that you were called out for being ironic and instead attempted to redirect? It really does say a lot about your need to be accepted. BTW don't you perform for a living?

#46 | Posted by Dirk at 2012-02-19 11:51 AM | Reply | Flag:

"I can only assume that your task master would not let you suck his dick unless you performed perfectly as you have an allure to the rigid?"

I'll defer to an expert like you on that subject.

Now, regale us again with all those amendments to the Bill of Rights....

#47 | Posted by Danforth at 2012-02-19 11:51 AM | Reply | Flag:

"It had nothing to do with your ability to spell a word as we of course already know."

Of course not. It had all to do with laughing at a moron who doesn't know what an amendment to the Constitution is, but is more than ready to call out another for "dullness".

"I find it funny that you can't just admit that you were called out for being ironic"

I find it even funnier you didn't realize I know how to spell intelligence. Irony had nothing to do with it, Alanis.

#48 | Posted by Danforth at 2012-02-19 11:54 AM | Reply | Flag:

Anyway not wanting to get too into your shit this AM but the fact of the matter is you needed called out. Time to get something done. Outta here for now!

#49 | Posted by Dirk at 2012-02-19 11:55 AM | Reply | Flag:

"Anyway not wanting to get too into your shit this AM but the fact of the matter is you needed called out."

I'm sure that sentence makes sense on some planet.

#50 | Posted by Danforth at 2012-02-19 01:12 PM | Reply | Flag:

"Predatory" lending can only exist with stupid, careless prey.

So it's okay to prey on people?

#51 | Posted by snoofy at 2012-02-19 11:30 PM | Reply | Flag:

So it's okay to prey on people?
#51 | Posted by snoofy

Our way of life couldn't sustain itself were it otherwise. You have to be able to capitalize off stupid people making stupid choices, and craft business offerings to facilitate and induce that stupidity.

#52 | Posted by Hagbard_Celine at 2012-02-19 11:55 PM | Reply | Flag:

So it's okay to prey on people?
#51 | Posted by snoofy

Our way of life couldn't sustain itself were it otherwise.

So our way of life is okay?

#53 | Posted by snoofy at 2012-02-20 04:06 AM | Reply | Flag:

Debt collectors prey successfully on the young and old.
Lenders think everything in a credit report is true. Thus, a new form of extortion is invented. Case in point. You get a Doctor bill for $1000. Under the terms of your Health Insurance Company, which you have no say in whatsoever, you pay $25 and insurance gets a discount and pays $500 and the bill is settled. Or the insurance later decides this is a pre-existing condition and refuses to pay anything. You now owe $975, instead of $25 or $475 and good luck getting out of it, even if you would never have done the procedure had you known. If you pay the appropriate $475, it will be recorded as a $500 bad debt, but never against the insurance company.

#54 | Posted by nutcase at 2012-02-20 09:35 AM | Reply | Flag:

"The Consumer Financial Protection Bureau, created over stiff GOP opposition, is moving to bring debt collectors and the credit-rating industry under federal supervision for the first time."

Why? Isn't the power to tell them what light bulbs they are permitted to buy and forcing them into socialized medicine not enough power already?

#55 | Posted by Diablo at 2012-02-20 03:41 PM | Reply | Flag:

So our way of life is okay?
#53 | Posted by snoofy

You're really missing my sarcasm lately.

#56 | Posted by Hagbard_Celine at 2012-02-20 06:04 PM | Reply | Flag:

So our way of life is okay?
#53 | Posted by snoofy

You're really missing my sarcasm lately.

Sorry, I thought you were making something approaching this point:

"The West won the world not by the superiority of its ideas or values or religion, but rather by its superiority in applying organized violence. Westerners often forget this fact, non-Westerners never do." -- Samuel P. Huntington

#57 | Posted by snoofy at 2012-02-20 10:46 PM | Reply | Flag: