Collection industry insider, Bill Bartmann, has started an electronic petition he will submit to Congress where he suggests the following amendments to the Fair Debt Collection Practices Act (FDCPA):
We hereby petition Congress to amend the current debt-collection rules by adding the following provisions:
- Increase the penalty for violations of debt-collection rules from the current $1,000 to $10,000 for each violation.
- Ban all collection activities on debt that is older than the relevant statute of limitations.
- Raise the requirements necessary to file a lawsuit on credit-card debt.
- Require collection agencies to provide clear and understandable history of debt.
- Require all collection agencies to be licensed.
- Require all collectors to be licensed.
- Require an annual compliance audit for all collection agencies.
Learn more about the petition here: https://www.stopthesecriminals.com
The FDCPA regulates the collection of debt. It is well recognized that amendments need to be made to this consumer protection law from the 1970’s in order to bring it current with advances in technology, and to assist in curbing the steady increases in reported collection abuses.
Collection abuse has been #1 in industry complaints to the Federal Trade Commission several years running.
2010 saw quite a bit of interest and activity toward amending the FDCPA. The process to amend the Act is well underway.
Want to see the collection industry cleaned up virtually overnight?
Impose a 10k penalty per FDCPA violation.
Think a penalty of ten thousand dollars is that far fetched? The FTC recently put in place an up to 16k penalty per Telemarketing Sales Rule violation that is primarily imposed upon debt relief advertisers, marketers, and service providers – companies who promote they help consumers resolve delinquent debt.
Congress could certainly impose similar statutory penalty caps for violations of the FDCPA against collection agencies – companies who work with creditors and debt buyers to resolve delinquent debt.
I agree with you Michael that the fine for each FDCPA violation by debt collectors should be increased to 10 thousand dollars so that debt collectors at least will think many times before harassing you and committing a violation of the Act.
Micheal – thanks for the comparison to penalty for TSR violations. Consumers should also realize that collection agencies may have to pay their attorney’s fees and they may be entitled to punitive damages if they are successful against the collection agency. I am in agreement that the amount for statuatory damages needs to be raised.