November 6, 2013 – American Banker quoted Fidelity Creditor Service CEO Clint Sallee in a November 6, 2013 story about a CFPB announcement that the agency would begin taking comments on how to write new regulations for the debt collection industry, that could ultimately impact how often a debt can be sold and to whom.
The agency’s actions echo changes the CFPB is seeking in other markets, including mortgages. Although the new mortgage rules have made lenders anxious, many debt collectors appear supportive of heightened regulations, with some suggesting more rules are necessary.
Sallee told the publication that he appreciates the CFPB’s efforts to regulate the industry. “The last thing we’re going to do is run because of regulatory headwinds. It’s not going to put us out of business. It’s just unpleasant and sad that we need this,” said Sallee.
Though opinions may change once the CFPB issues its proposed regulations, most debt collectors are hopeful that the rules will weed out the bad actors that often buy debt for pennies on the dollar and then threaten consumers through litigation without verifying documents.
Interesting SideNote: Mr. Sallee’s quote from the American Banker article is used during a Congressional hearing. Here is the link to the CSPAN video. You can find Senator Brown’s comments at 42 min into the hearing. http://www.c-spanvideo.org/