Regulating Debt Collection

Authors

Christopher K. Odinet, Texas A&M University School of LawFollow
Roederick C. White

Document Type

Article

Publication Date

3-2017

Journal Title

Review of Banking & Financial Law

ISSN

1544-4627

Abstract

Debt collection. It often starts as a late night call carrying threats of being thrown in prison, ruin at the workplace, and trouble for the family unless you pay up. While the law actually prohibits some of these tactics, most consumers do not know their legal rights, which leave much to be desired, or fail to exercise them when faced with the harassing practices of some debt collectors. Moreover, the debt collection industry as a whole — both massive and sophisticated — lacks the incentives to self-police or internally punish bad actors. In July 2016 the Consumer Financial Protection Bureau released a proposal aimed at overhauling the entire debt collection industry — both as to how collectors interact with consumers and how debts are bought and sold. Consumer protection groups have lauded the proposal as a win for average Americans, while consumer credit firms caution that some of the provisions go too far and risk crippling the collection industry, which would have an adverse effect on the ability of people to obtain the type of everyday credit that makes the wheels of the economy turn. This Article explores the proposal and critiques the places where they fall short or go too far, as well as considers future developments and issues that will arise from their enactment.

First Page

869

Last Page

914

Num Pages

46

Volume Number

36

Issue Number

2

Publisher

Boston University School of Law

Recommended Citation

Christopher K. Odinet & Roederick C. White, Regulating Debt Collection, 36 Rev. Banking & Fin. L. 869 (2017).
Available at: https://scholarship.law.tamu.edu/facscholar/2137

File Type

PDF