THREAD: Debt collectors used to “fear” @CFPB under @RichCordray but now praise the “clarity” from @CFPBDirector Kraninger, who is easing up on enforcement and proposing an industry-friendly regulation. Hat tip @TokyoWoods 1/7
wsj.com/articles/debt-…
wsj.com/articles/debt-…
And this pro-industry rule is coming amid a perfect storm of skyrocketing U.S. household debt — $13.67 trillion — and rising defaults. Under the new rule, debt collectors would be freer to harass more people and invade their privacy while Kraninger fails to #ProtectConsumers. 2/7
Debt-buying companies purchased record levels of debt in 2018 — and collected even more. They buy debt for pennies on the dollar and then harass consumers for repayment. While consumers suffer, debt buyers like @Encore_Capital and @PRAGroupInc make a killing. 3/7
“I kept saying I’d lose my house. I lost my appetite. I lost 30 pounds.” Stories like these are all too common among people nagged by old debt. And as debt collection filings and judgments continue to soar, more consumers face those experiences. 4/7
Collectors say the new rule will “improve communications with borrowers.” For consumers, this means unlimited texts and emails, plenty of calls, and vague messages to employers, family, and friends. 🤔 5/7
The staggering number of debt collection suits is the work of collectors themselves. When the courts get overwhelmed with all of the debt cases, borrowers lose and are forced to pay. “Mass-produced justice is not justice.” Hat tip @yberard 6/7 ajc.com/news/crime--la…
The debt collection rule proposed by @CFPB will allow collectors greater access to borrowers. It allows collectors to pursue old, sometimes expired “zombie” debt. It will increase the number of debt cases in the courts. Needless to say, it will do little to #ProtectConsumers 7/7
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