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ISPLA News- CFPA to regulate Credit Bureaus and Collectors

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  • Peter Psarouthakis
    Credit bureaus and debt collectors to come under the gun of the new Consumer Financial Protection Agency. Not only will major credit bureaus and collection
    Message 1 of 1 , Feb 17, 2012
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      Credit bureaus and debt collectors to come under the gun of the new Consumer
      Financial Protection Agency.





      Not only will major credit bureaus and collection agencies be targeted, but
      what is referred to as "The Fourth Business" is also being scrutinized. In a
      Washington Post article last July reference was made to L2C which tracks
      consumers' auto warranties, cell phone bills, magazine subscriptions,
      prepaid cards, pay day loans and whether one's checks cleared.





      A February 16 Market Watch article by Maya Jackson reads: "Debt collectors
      and credit reporting agencies -- two markets that are impacting more and
      more consumers -- would face federal supervision for the first time under a
      rule a new U.S. federal watchdog proposed Thursday.


      "The proposal would allow the Consumer Financial Protection Bureau to
      examine roughly 200 firms, including large debt collectors such as Encore
      Capital, Asset Acceptance, NCO Group and Portfolio Recovery Associations.


      "In addition, the bureau plans to police credit bureaus such as Equifax
      Inc., Trans Union LLC and Experian Information Solutions, Inc. and
      CoreLogic, which provide consumer information to businesses.


      The new agency plans on regulating debt collectors with more than $10
      million in annual receipts from debt collection activities, which reportedly
      covers about 175 debt collection firms. The basis of the proposed regulation
      is that the "consumer reporting market also plays a critical role in the
      consumer finance world by providing credit reports that banks use to decide
      whether to extend a loan or that employers may use when deciding who to
      hire."


      The Consumer Data Industry Association indicates that each year there are 36
      billion updates to consumer files, and three billion reports are issued. The
      three largest consumer reporting agencies maintain information on 200
      million American consumers."


      The CFPA proposal would allow supervisory authority over about 30 consumer
      reporting agencies that together account for about 94% of the annual
      receipts from consumer reporting.


      The full article is available at:



      <http://www.marketwatch.com/story/cfpb-to-police-credit-bureaus-debt-collect
      ors-2012-02-16>
      http://www.marketwatch.com/story/cfpb-to-police-credit-bureaus-debt-collecto
      rs-2012-02-16





      A Washington Post article is also available at:






      <http://www.washingtonpost.com/business/economy/consumer-agency-wants-oversi
      ght-of-debt-collectors-credit-bureaus/2012/02/15/gIQAieioHR_story.html?wpisr
      c=al_comboNE>
      http://www.washingtonpost.com/business/economy/consumer-agency-wants-oversig
      ht-of-debt-collectors-credit-bureaus/2012/02/15/gIQAieioHR_story.html?wpisrc
      =al_comboNE


      The proposed rule is open for comment for 60 days after the rule is
      published in the Federal Register. Stay tuned to see how this plays out
      regarding information brokers. ISPLA will be reviewing the Federal Register
      and working with other stakeholders to protect the interests of
      investigators.





      Bruce Hulme


      ISPLA Director of Government Affairs


      <http://www.ispla.org/> www.ISPLA.org


      Your Proactive Voice from State Capitols to the Nation's Capitol



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