New Consumer Bureau Should Standardize Debt Collection Letters
Posted by | Posted in Financial News | Posted on 18-07-2011
More than any other complaint, the Federal Trade Commission received those about debt collectors. Specifically, people complained that they were often ignored when requesting validation of debt (VOD) and or refused the right altogether. The Federal Fair Debt Collection Practices Act (FDCPA) demands that consumers be given this basic right but collection agencies often fall short — either not sending out the notice or leaving the important verbage out of the notices. Because there is some variances in the FDCPA verbage it can be open to interpretation. Adding a standard format would make the rules clear to everyone.
The new Consumer Finance Protection Bureau (CFPB) which will work along side the FTC will have the power to make changes in the debt collection industry including requiring that collection agencies follow standard formats in their letters. By having a system in place that all collection agencies would have to follow, there would be less confusion for consumers and probably less violations by the collection agencies.
According to Credit.com the idea format would be as follows;
Details of the debt
Summary of Consumer Rights
This type of letter would be clear and concise and also provide details that a VOD would normally include. It would also answer the always almighty SOL question — statute of limitations of when the debt would expire. Makes sense!
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