The Consumer Financial Protection Bureau (CFPB) has published a rule that will allow the agency to federally supervise the larger consumer debt collectors for the first time.
The CFPB also released the field guide that examiners will use to ensure that companies and banks engaging in debt collection are following the law. According to the CFPB, approximately 30 million Americans have, on average, $1,500 of debt subject to collection.Â
The CFPB's supervision authority over these entities will begin when the rule takes effect on Jan. 2, 2013. Under the rule, any firm that has more than $10 million in annual receipts from consumer debt collection activities will be subject to the CFPB's supervisory authority. This authority will extend to about 175 debt collectors, which account for over 60% of the industry's annual receipts in the consumer debt collection market.
‘Millions of consumers are affected by debt collection, and we want to make sure they are treated fairly,’ says CFPB Director Richard Cordray. ‘Today we are announcing that we will be supervising the larger debt collectors in the market for the first time at the federal level. We want all companies to realize that the better business choice is to follow the law – not break it.’