Do you consider collections an important part of your job/business? If you’re like 99.9% of the apartment industry then you answered yes to that question and that means you really should read this article at Multifamily Executive:
The CFPB, aka the Consumer Financial Protection Bureau, is not just another acronym we should ignore.
No, the CFPB is unlike any federal agency we’ve ever seen. The consumer watchdog group is the result of Congress’ reaction to Wall Street’s failures and abuses that led to the Great Recession. The Dodd–Frank Wall Street Reform and Consumer Protection Act created the CFPB with a mandate to provide a single agency to enforce 18 major federal consumer laws, some of which are relevant to the multifamily industry…
In October 2012, the CFPB gained authority over the debt-collection industry…
The agency is getting debt-collection complaints from consumers, and our industry would be foolish to think that it isn’t receiving thousands of complaints from folks who were evicted from our multifamily properties and who are now being subjected to debt-collection efforts on move-out accounts.
At this point, maybe you’re thinking, “We sell our debt. I’m not concerned about the CFPB,” or, “Our collection attorney [or agency] handles all that stuff. The CFPB is their problem, not mine.”
If you believe that, read what CFPB director Richard Cordray recently told The Washington Post:
“We’re also examining debt collectors. We’ve done some enforcement actions involving debt collection, and there will be more. We’ve put out a bulletin on first-party debt collectors, making clear that they’re also covered under existing law.”