Written on May 14, 2011 – 8:35 am | by Carleen Anderson
As of July 21, 2011, a new agency will be joining the Federal Trade Commission to help investigate the growing number or complaints regarding debt collectors violating the Fair Debt Collection Practices Act. (FDCPA)
This new consumer protection, federal watchdog agency will be named the Consumer Financial Protection Bureau, and was created by a law enacted last year. According to reports, this agency will have the ability to set rules, whereas the FTC can investigate complaints, but not write rules.
Regulations need to be addressed regarding the debt collection industry and communication with debtors using new techology including voice mail, cell phones and e-mail.
The newer technological advancements have brought to the forefront the need for stricter regulation as they create even greater opportunity for harassment and abuse by debt collectors in their efforts to communicate with a debtor. The new agency will be able to listen to complaints and act to resolve these complaints as well.
This move comes at a time when debt collection activity is on the upswing, as more consumers struggle to pay credit cards, hospital bills, loan and mortgages. Many credit