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Debt collection is a multibillion dollar industry that consistently generates the most consumer complaints to the Consumer Financial Protection Bureau (CFPB). Servicemembers and veterans are especially impacted by abusive debt collection activities, which were the subject of 42 percent of all complaints to the CFPB from military consumers. Why would Congress want to limit consumer protections against an industry that is clearly among the most abusive of consumers?
Yet reducing consumer protections is exactly what the Practice of Law Technical Clarification Act, sponsored by Rep. Vicente Gonzalez (D-Texas) and Rep. Alexander Mooney (R-W.Va.), aims to do. The bill would exempt attorneys and “law firms” engaged in litigation activity from the federal Fair Debt Collection Practices Act (FDCPA). Consumers would lose their FDCPA protections against abusive litigation.
If Congress passes this bill, attorneys and law firms engaged in debt collection around the country would no longer be in violation of the FDCPA even if they file lawsuits in courts hundreds of miles away from where members of the armed services are stationed or other the consumers live, making it nearly impossible for most consumers to appear in court to defend themselves against the collection lawsuit, and file lawsuits on old debts long after the legal time limit to sue has expired, pursuing zombie debt so old that people no longer have records to show they already paid.
They would no longer be in violation if they pressure the elderly into signing over protected Social Security income to pay off default judgments, proceeding to trial without any witnesses or admissible evidence, relying on court rules to award them judgment if the consumer does not appear or asking the court to continue or dismiss the case if the consumer does appear, or run collection mills that generate tens of thousands of robo-signed legal complaints weekly with as little as 30 seconds of attorney review.
Law-abiding collection lawyers are put at a disadvantage competing against disreputable attorneys who engage in abusive practices such as the ones described here. Congress should not facilitate a race to the bottom among collection attorneys by removing FDCPA remedies for these and other abusive litigation practices.
Under current law, servicemembers, veterans, seniors and other consumers can use the FDCPA to obtain relief from the attorneys whose litigation practices violate the law. But if this bill passes, this relief will not be available throughout the nation. There are private remedies available in some state laws, but the coverage is uneven. The CFPB would also be barred from addressing abusive litigation-related and post-judgment debt collection practices by attorneys and law firms.
Proponents of the Practice of Law Technical Clarification Act argue that court rules and state bar associations will adequately protect consumers. But to date, neither the courts nor bar associations have been effective in policing litigation abuses by collection attorneys. There is no reason to believe that these agencies will suddenly step up now if FDCPA sanctions against collection attorneys for litigation abuses are eliminated. Moreover, only the FDCPA provides a means for consumers to obtain redress after they have been harmed
See Comments
Rosado Fox, The Wall • 4 months ago
Just another indication...it's open season on 99% of Americans. Only low-life banksters, lawyers & collection agents would seize the elderly's SS income...for some meaningless -- LOL -- supposedly delinquent payday loan or credit card debts.
WAKE UP PEOPLE! It will only get worse. Each day what rights you have.....disappear.
It's not the governments job to protect people from debt collectors! Personal responsibility is your protection!! Try spending ONLY what you can afford to spend!!
YOU DON'T GET IT. What about people who have identity theft or are accidentally in a database for being negligent with creditors.
You don't have a right to be a thief. Not paying money back you owe means you are a thief.
You obviously do know know enough about why this is wrong.....to cast judgment. There is a large error factor here. You must first hold the industry accountable...Moookie
This isn't about "thief" versus responsible payor, this is about responsible and fair debt collection practices that are not 100 percent accurate to begin with. Creditors still have every right to pursue debt as they do today even without this bill, this bill only makes it easier for creditors to abuse process with impunity.
It's fair to collect the debts owed.
Considering all the fraud in today's financial system -- you know, like the recent Equifax breach -- a lot of innocent Americans are wrongfully ensnared in rogue collections agents' efforts...for debts "they do not" owe. It's systemic...
That's bad, bro.
Yes, it is. It is also fair to require creditors to act fairly and be held to minimum civil standards.
It is fair. If you owe the money you owe the money.
Many many people are being pursued for "phantom debt" -- you cannot assume that all debts are really yours. Verify!
And it is fair for creditors to prove that money is owed before attempting collections, and acting civilly and with due process of law in that proof.
Wouldn't have bought your debt if you didn't owe it. It's also money that has previously asked for. Don't be a deadbeat. Pay your bills.
Your mother owes a huge debt to society for having raised an imbecile like you.
When is she paying off that debt?
First, your presumption that this is about me is erroneous personal attacks that proves you're losing the factual and legal battle. Second, plenty of "debts" are alleged erroneously, and paid just because it's cheaper than fighting them. It is not improper to stand with the many creditor protections that exist now. For reference, here is the Federal Trade Commission discussion on the topic:
https://www.ftc.gov/news-ev...
PS - "Wouldn't have bought your debt" suggests you are a creditors' representative. Is that full time, or are you just paid by the post for this issue?
To quote a favorite music group from the 90's.....You are NEVER GONNA GET ...NEVER GONNA GET IT...
Trump works quietly to Harm all the military & veterans.
He just doesn't care about them
In the old days, they'd send a goon around to break the deadbeat's legs! The market worked!
Are you kidding? This bill protects the Free Market and those who purchase uncollected debt! Debt collectors are acting in good faith when they buy delinquent debt, and the deadbeats need to get a ire built under their butts, to force them to pay up!!!! Service members should be held accountable. After all, they get all their meals, room and board and clothing free of charge!!
The findings of "good faith purchase" and actual debt are for courts to decide. This bill would eliminate protections leading up to creditors proving there is actually a debt to collect. You offer only conclusory statements to get the word "deadbeats" in (is that you again, MooookieStix?). Your leaps to conclusions are exactly why the Fair Debt Collection Practices Act exists, and limits the ruthless "free market" (which only actually exists in unregulated black markets, if you study economics at all).
And your crack about service members suggests that neither you nor anyone you love has ever been in service. Those MREs and soggy tents and battle dress uniforms aren't "free," they in fact carry a steep cost.
Glad to see that there is at least one thing dems and repubs can agree on - screwing consumers. Can there be any doubt who pulls the levers of power?
republicans wake the eff up. it's not the poor, immigrants, sick and uneducated driving legislation. it's the rich and powerful. while you're focused on the powerless the powerful are screwing you.
deadbeat is a conclusion. you skipped right over everything that leads to your conclusion. study harder so you can try harder!
Being in bed with and on the side of Payday Lenders and Debt Collector industry filth.
And an industry that preys on Vets. Truly MAGA legislation.
This is horrible. Forcing people to pay the money they owe.... What kind of world do we live in where you borrow money to buy stuff and actually have to pay it back.
This isn't about paying or not paying, it's about requiring fair conduct from those collecting alleged debts before they are proven. HUGE difference in purpose.
Debt collection is about not paying. Not sure what you think the term debt collection means? Lol
"Debt collection" is about proving debt, and only then moving to collect rightful debts. Do you suggest that every debt collector is 100 percent accurate 100 percent of the time? If you cannot assure that then "debt collection" is still subject to proof using due process of law.
It's about collection. That's why the word collection is in the phrase.
Collection of rightful debts. No one is suggesting that's improper. This bill is about allowing more creditor abuses in the name of simplicity, and that is wrong -- no matter who is paying your bill here.
Say it with me. Debt collection. If you owe the money you owe the money. Don't try to weasle your way out of what you owe deadbeat.
Say it with me . . . once the debt is properly proven, creditors may use the many protections they have already paid to have inserted into law. Say it with me, abusive practices involving unproven "debts" is wrong morally, and as a matter of law.
You owe money. That's why this scares you. Deadbeat.
Ah, the personal attack that proves you've no facts or law to win the debate. Thank you for proving my point.
Last question: are you a creditor's representative, or just a wringer paid by the post?
Yes, I checked out its disqus link, and saw that "deadbeat" is one of its favorite words. C'est l'internet, n'est pas?
The nurse left her too close to the keyboard, again.
Actually, a massive number of these collections are against people who don't owe a dime either because false identification, stolen identities, or it's just a scam to begin with
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