Regulators propose huge overhaul of debt collection industry - KMOV.com

Regulators propose huge overhaul of debt collection industry

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New proposed rules to regulate the debt collection industry. Credit: KMOV New proposed rules to regulate the debt collection industry. Credit: KMOV

 NEW YORK (AP) — The Consumer Financial Protection Bureau has proposed a massive overhaul of the multibillion dollar debt-collection industry.

The changes released Thursday would restrict collectors from calling numerous times a day, require them to more substantially prove a debt is valid, and give people more ability to dispute their bills.

It would be the biggest overhaul of the debt collection industry since Congress passed the Fair Debt Collections Practices Act nearly 40 years ago. Regulators estimate roughly 70 million Americans are contacted by debt collectors each year, and more Americans submit complaints to state and federal agencies about unfair or deceptive practices than any other part of the consumer financial system.

The new proposals from are likely to be resisted strongly by the industry and its allies in Washington.

If you want to file a complaint about calls from collectors, click here.


 

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