By: Neil Gonsalves, Director at A-LIGN
On October 24, 2012 the Consumer Financial Protection Bureau (CFPB) published a rule that would allow the CFPB to federally supervise the larger consumer debt collectors/collection agencies. One of the main objectives of the CFPB Examination is to ultimately help ensure that consumers that are affected by the debt collection process are treated fairly. The CFPB’s supervision authority over these debt collectors/collection agencies took effect on January 2, 2013. Under the rule, any firm that has more than $10 million in annual receipts from consumer debt collection activities are subject to the CFPB’s supervisory authority. The CFPB may adopt a risk based approach focusing on debt collectors/collection agencies that pose a heightened risk to consumers based on information available from regulators, complaints, litigation, and media among other sources.