The Consumer Financial Protection Bureau recently made a big move, proposing regulations that would give the agency the power to supervise debt collection and credit reporting. According to a blog post on the New York Times website, these are two financial areas with bad reputations, often drawing complaints from consumers about aggressive tactics and unfair practices.
In fact, the Times blogger notes that debt collectors are the most common target of non-fraud consumer complaints at the Federal Trade Commission (FTC). Credit reporting companies have also come under fire for acting friendlier towards creditors than consumers.
The regulations are still in the proposal stage, but the Bureau hopes to have them finalized by July. That could be tough, since many Republicans want to rein in the Bureau’s authority altogether. But if passed, it could mean more protection for people like you.
How to protect yourself in the meantime
Just because the new watchdog rules aren’t finalized doesn’t mean you can’t file a complaint or protect yourself from shady business practices. For starters, a recent amendment to the Fair Credit Reporting Act requires each of the nationwide credit reporting companies — Equifax, Experian, and TransUnion — to provide you with a free copy of your credit report every 12 months. All you have to do is ask.
If you have a complaint about your credit score or notice an error, make sure to report it to the credit report company right away. The FTC says to send your complaint in writing, including copies of documents that support your case. Send it all by certified mail so you have a paper trail. The credit reporting company will investigate, and then give you the results in writing, plus a free copy of your report if your score changes. They’ll also send revised copies of your credit report to anyone who requested it in the last six months, if you ask.
As for debt collectors? If you have no idea why they’re knocking on your door, you have options. As we reported last week, do your research to see what the statute of limitations is in your state. If the debt is time-barred, the collection agency can’t sue or threaten to sue you. Whatever you do, don’t pay a cent until you’ve established what your rights are—and that the debt is actually yours.
SOURCES:
http://dealbook.nytimes.com/2012/02/16/consumer-bureau-proposes-first-crackdown/
http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre21.shtm
http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre18.shtm
