If you are in collection industry you probably heard about new proposed changes to debt collections law which would affect the way debt collection agencies do business. Consumer Financial Protection Bureau (CFPB) proposed these new regulations with the idea that it will give more protection for small businesses and individuals. Many other commercial debt collection agencies, as well as debt recovery firms, view these newly proposed rules as a hinderance to the way they currently pursue and collect debts from individuals. The precedent has been set for these proposed changes by an earlier recommendation from the CFPB in where they recommended changes to payday lending.
The new law proposals from the CFPB come as a response to a large amount of complaints from individuals who are feeling harassed by debt collection agencies. Further, complaints about these debt collection tactics make up a quarter of all reports to the CFPB. The tactics in these reports include constant phone calls in rapid succession and debt collectors contacting individuals at work.
The proposed regulations would include:
- A limit on how individuals may be contacted by debt collectors;
- New rules that will protect people against false debt collection claims;
- Increase the costs of compliance.
AMA Firm Is Unaffected
At Alexander, Miller & Associates we specialize in large balance commercial collections, the newly proposed CFPB regulations currently extend this protection only to the individual debt owner. Currently these proposals will not affect what AMA firm mainly focuses on which is collecting large balance accounts from businesses, LLCs and Corporations. Alexander, Miller & Associates pursues commercial collections and debt recovery in all industries; this includes commercial accounts receivables in Heavy Equipment Rental, Trucking Transportation & Freight, Restaurant Supply, Wholesale Produce and Seafood, as well as several others.
Due to these new regulation proposals, many business owners of debt collection agencies have raised concerns about how this will restrict their current business operations. Many in the collection industry feel these new regulations will cause them to go out of business. In total the newly proposed regulations will only be affecting third-party collectors, as of now banks and credit unions will be unaffected.
We at Alexander, Miller & Associates will remain unaffected by these new regulations. Although we are a third party collector, we are dedicated to the highest quality experience and results for our clients and payees, and we have fostered an established reputation for excellence.
For more information contact us at Alexander, Miller & Associates for more information.