OC's Collection practices covered by the Dodd Frank Act.

[ICANHASMUNY?]

the Dodd Frank Act covers Debt collection by OC's. ...

 

 

 

UDAAPs can cause significant financial injury to consumers, erode consumer confidence, and undermine fair competition in the financial marketplace.

 

Original creditors and other covered persons and service providers under the Dodd-Frank Act involved in collecting debt related to any consumer financial product or service are subject to the prohibition against UDAAPs in the Dodd-Frank Act.

 

Again, the obligation to avoid UDAAPs under the Dodd-Frank Act is in addition to any obligations that may arise under the FDCPA.

 

Original creditors and other covered persons and service providers involved in collecting debt related to any consumer financial product or service are subject to the prohibition against UDAAPs in the Dodd-Frank Act.

 

 

 

http://files.consumerfinance.gov/f/201307_cfpb_bulletin_unfair-deceptive-abusive-practices.pdf

 

 

So remember, - if your State laws don't cover OC's and their abusive debt collection practices, you can now use the Dodd Frank Act, and file complaints against the OC's with the CFPB.

 

 

 

[cv91915]

That's interesting. Thank you for posting.

[ICANHASMUNY?]

and the Government is going after JP Morgan Chase on this issue

 

http://dealbook.nytimes.com/2013/08/27/regulators-prepare-penalties-for-jpmorgan/

 

The other federal actions spring from an investigation into debt collection lawsuits the bank filed against its credit card customers from 2009 to 2011, the people said. As JPMorgan plowed through a glut of overdue credit card bills and other loans, authorities suspect, the bank deluged state courts with lawsuits that used faulty documentation to substantiate the amount owed by consumers. Often, the bank relied on outside law firms without double-checking their work.

 

The comptroller’s office, in a preliminary review, spotted errors in about 9 percent of monetary judgments the bank won against consumers, the people close to the matter said, adding that the action was not yet final and the details could change. In nearly all those cases, however, the consumers never paid the bank the full amount owed.

 

The case from the consumer bureau and the comptroller, Thomas J. Curry, comes after a similar lawsuit from the California attorney general, who accused the bank in May of committing “debt collection abuses against tens of thousands of California consumers.” JPMorgan, the attorney general said, took shortcuts when filing thousands of lawsuits each month to collect soured credit card debt.

 

Until now, unlike the foreclosure practices, banks’ pursuit of credit card and other consumer debts have fallen into something of a regulatory gulf. The primary federal law that governs how companies pursue consumers behind on their bills does not apply to lenders like JPMorgan. Instead, it polices third-party debt collection firms.

 

But the Dodd-Frank financial overhaul law, a 2010 law that regulators are beginning to apply, emboldened federal authorities to take a tougher stance with lenders. In July, Richard Cordray, the director of the Consumer Financial Protection Bureau, warned at a public hearing that the agency under Dodd-Frank had the authority to prohibit banks from employing any “unfair, deceptive or abusive acts.”

 

“It doesn’t matter who is collecting the debt — unfair, deceptive or abusive practices are illegal,” Mr. Cordray said at the time.

[creditkingpin]

What affects will this have on disputing debts? what information can we use from this act? Does this mean they will have to follow FDCPA?

Edited September 13, 2013 by creditkingpin

[ICANHASMUNY?]

the Card act has many facets a copy and links is in the Laws, Laws Laws Resource forum

 

it's mostly about billing rights, no universal default, interest rates, clear and understandable card agreements, etc.

 

if the lending banks violate the card act, you file a complaint with the CFPB.

 

if the Lending banks are abusive trying to collect a past due debt, you can use the provisions of the card act and file a complaint with the CFPB.

 

there doesn't seem to be a right to private action like the FDCPA