Certified Forensic Loan Auditors, LLC

  Upcoming Classes

Search CFLA's Article Archive:

Regulator Tells Banks to End Scuzzy Debt-Collection Tactics

businessweek.comJuly 11, 2013

By Karen Weise

The Consumer Financial Protection Bureau is warning banks to be careful about how they pursue consumer to repay soured debts. The move fills a gap in oversight: Previously, the main law that oversees debt collection primarily covered third-party collectors that lenders may hire, as well as companies that buy debts to collect on their own behalf. The law, named the Fair Debt Collection Practices Act, didn’t regulate banks that choose to collect the debts themselves.

Now the CFPB wants the banks it oversees to follow the same rules, which include a ban on using profane language when calling consumers and a requirement for accurate accounting of how much a borrower owes. The agency claimed supervisory oversight over the independent debt collectors and buyers last year.

The practices at banks have come under increased scrutiny, particularly how they collect credit-card debts. In the wake of the foreclosure robosigning scandal, American Banker reported last year that banks resorted to some of the questionable practices used in collecting on mortgages to try to recover unpaid credit-card debts. This included submitting signed documents to the court that hadn’t been verified and misstating the size of debts.

The Office of the Comptroller of the Currency and the attorneys general of 13 states have both been investigating JPMorgan Chase’s (JPM) practices. Ahead of an expected crackdown, the bank quietly stopped suing consumers for unpaid balances. American Banker this month reported that by pulling back on collections, JPMorgan Chase has had a harder time recouping unpaid accounts than its peers have experienced.

The rise of the CFPB as a regulator in this area bodes poorly for additional banks that may have been overly aggressive in pursuing old debts.


Back to July 2013 Archive

CFLA was founded by the Nation's Leading Foreclosure Defense Attorneys back in 2007 to serve the Foreclosure Defense Industry and fight pervasive Bank Fraud. Since opening our virtual doors, CFLA has rapidly expanded to become the premier online legal destination for small businesses and consumers. But as the company continues to grow, we're careful to hold true to our original vision. For us, putting the law within reach of millions of people is more than just a novel idea—it's the founding principle, just ask Andrew P. Lehman, J.D.. With convenient locations in Houston and Los Angeles, you can contact Our National Account Specialist and General Manager / Member Damion W. Emholtz at 888-758-2352 for a free Mortgage Fraud Analysis or to obtain samples of work product, including cutting edge Bloomberg Securitization Audits, Litigation Support, Quiet Title Packages, and for more information about our Nationally Accredited and U.S. Department of Education Approved "Mortgage Securitization Analyst Training Certification" Classes (3 days) 24 hours for approved CLE & MCLE Credit (Now Available Online).

SEE BELOW- http://www.certifiedforensicloanauditors.com

Call us toll free at 888-758-2352

Bookmark and Share
Facebook Like us on Facebook
Twitter Follow us on Twitter
YouTube View our YouTube Videos
LinkedIn Connect to us on Linkedin
BBB Logo


Contact us or view our Sample Documents & Audits by completing the form below.

  • Reload
  • Should be Empty:


DVD Sets Only $99


FREE Mortgage Fraud Analysis


Order Cutting-Edge Services Now


Quiet Title Packages from Licensed Attorneys


Affiliate Services


CFLA Sponsored Attorney Links


Take-Home Education Package