CFPB partners with federal, state agencies to target ‘phantom,’ abusive debt collection

The CFPB is partnering with the Federal Trade Commission (FTC) and more than 50 federal and state law enforcement agencies to launch a nationwide law enforcement and outreach initiative to target phantom debt collection and abusive and threatening debt collection practices. NAFCU is supportive of the bureau’s efforts to prevent bad actors in this space.

According to a release on the initiative, “Operation Corrupt Collector,” the purpose is to prevent debt collectors from engaging in illegal practices related to collecting non-existent debts and using scare tactics.

“The CFPB is actively working to protect consumers from illegal actions of debt collectors,” said CFPB Director Kathy Kraninger. “We will continue to monitor the financial marketplace, as well as consumer complaints received, in order to ensure that we identify and take action against debt collectors who are violating the law. Lastly, consumers should know that the Bureau’s consumer complaint system is a resource for them to submit any complaints they may have on their experiences with financial services providers.”

continue reading »