Debt collectors and the agencies that hire them have been a problem for many people for a very long time. Itís hard to even see a day pass without people reporting debt collectors that have gone out of control, doing things that are illegal. And of course, some of them are caught, but other injustices are actually quite legal to do — like chasing down time barred debts when the agency knows that they are no longer collectible. But if the customer pays them or works out arrangements, the debt clock starts all over again.

The Consumer Financial Protection Bureau is looking into what it can do to protect the consumers of the country, including increasing supervision on the very companies that are causing the problems in the first place.

The new agency has the power to supervise payday lenders, mortgage companies, and private student lenders. It can also write rules to supervise other big companies and keep them in line.

Representatives from the CFPB stated that they want to go after debt collectors and credit bureaus because these industries touch so many peoples’ lives. If debt collectors are being abusive and unfair, the consumer doesn’t really have a strong chance of fighting back.


What does this mean for everyone in debt? Well, it means that you might have some salvation coming your way, or at least a little debt relief. However, you will need to still make sure that you’re working out your won financial blueprint. Don’t wait for this agency or any other agency to save you. Negotiate hard with the debt collectors. Make sure that you’re looking at the FDCPA and ensuring that the agency actually has the right to collect on the debt in the first place. Go through your validations and make sure that you’re keeping a strong paper trial. Don’t be automatically afraid of court appearances — because the can still go in your favor if you really think about it.

Now is the time to be bold, not weak. You have to make sure that your finances are going to go exactly the way that you want them to go, rather than just being a victim. That mentality isn’t going to really do you any favors at all, and it can hurt you in many more ways than you think.

It’s also important to note that we don’t think these industries are evil. Someone has to track down bad debts. Some one has to lend out short term emergency loans. Those aren’t going to have the same interest rates as a credit card or a car loan. You will have credit applicants from all walks of life, with all types of credit situations. We think that the interest rate should be indeed higher to reflect the increased risk of default. Is there a need for a limit? Absolutely! Do we think that the limit might need to be adjusted in greater favor of the consumer? Absolutely! Make sure that you are taking control of your finances and the rest will definitely fall into place in its own time. You just need to make sure that you’re being as consistent as you can possibly be, and that you are getting the assistance that you need right away!