Consumer Advocates Oppose Debt Collection Bill

Do you have concerns about fair debt collection and protections that are in place in Oak Park to help consumers who have been subject to fraudulent debt collection practices? According to a recent article in The Detroit News, a piece of proposed legislation by U.S. Rep. Dave Trott would amend the Fair Debt Collection Practices Act (FDCPA) in such a way that consumer advocates argue would harm debtors immensely. Indeed, “Drawing the ire of consumer groups,” the bill “would allow attorneys and law firms to sidestep federal law barring abusive debt-collection practices such as making false threats and pressuring people to pay debts they don’t actually owe.”
To be clear, the bill would exempt lawyers from liability in certain FDCPA violation cases. It is important for the FDCPA to be a law that Oak Park consumers know is there to protect them if they are harassed by a debt collector, or given misleading or fraudulent information. To better understand what this bill aims to do, we should take a closer look at it.
H.R. 1849 Would Exempt Parties from Liability in Debt Collection Lawsuits
The proposed legislation is H.R. 1849. The specific language in the bill describes its aims: “To amend the Fair Debt Collection Practices Act to exclude law firms and licensed attorneys who are engaged in activities related to legal proceedings from the definition of debt collector, to amend the Consumer Financial Protection Act of 2010 to prevent the Bureau of Consumer Financial Protection from exercising supervisory or enforcement authority with respect to attorneys when undertaking certain actions related to legal proceedings, and for other purposes.”
To be clear, the bill seems to have two goals - to exempt lawyers from liability under the FDCPA and to prevent the Consumer Financial Protection Bureau (CFPB) from exercising supervision over or enforcement of lawyers engaged in debt collection cases. While the bill was proposed by a U.S. House member from Michigan, if it were to pass, its impact would be nationwide.
Should the CFPB be Able to Regulate Lawyers’ Actions in Debt Collection Matters?
Some commentators allege that Trott has proposed the legislation due to his personal experiences as a lawyer, including being “sued in federal court for alleged violations of the Fair Debt Collection Practices Act.” Given Trott’s professional experience as a lawyer in such matters, some contend that there is a conflict of interest.
Should the CFPB be able to supervise lawyers engaged in debt collection cases, or to enforce the FDCPA against lawyers more generally? According to one advocate, the amendments proposed by H.R. 1849 would prevent certain lawyers from being held accountable for “debt-collection ‘mills’—large legal practices that generate and file tens of thousands of debt collection cases a year.” Many consumers seek protections from practices of law firms engaging in debt collection just as they seek protections under the FDCPA from more specific debt collection companies.
Seek Advice from an Oak Park Consumer Protection Lawyer
If you have questions about your rights as a consumer or concerns about filing a claim under the FDCPA, an experienced Oak Park consumer protection lawyer can assist you. Contact the Emerson Law Firm today to speak with an experienced consumer advocate.
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