The Consumer Finance Protection Bureau is about to become very interested in your debt collection business.
Whether you’re a payday lender, debt collection merchant or mortgage provider, there are changes coming in the near future, according to a recent news item titled CFPB Sets Timetable to Supervise Debt Collection, written by Kate Berry in the Collections & Credit Risk newsletter.
Since Instabill is a credit card processor for high risk e-commerce merchants, we’ve long been interested in the doings of the CFPB since it is involved in the industries for which we provide merchant services.
3 Ways in Which the CFPB Will Be More Present
It shouldn’t be any shock that the Consumer Finance Protection Bureau will be expanding its reach and scrutinizing the methods of debt collection merchants and payday lenders. On Dec. 16, Instabill copywriters blogged about the CFPB’s forthcoming draft of payday lending regulations that addressed the same issues written here.
Such merchants can expect three things to happen within the coming months:
Limits on short term, small amount loans
No doubt the CFPB is concerned about high interest, short term loans that tend to trap some consumers within a recurring payment cycle.
Lender, consumer interaction
It’s well known that some debt collection merchants employ tactics such as fear, threats and even harassment when trying to collect owed monies from consumers. Soon, the CFPB will be interested in all forms of communication between lenders, collectors and consumers, and the frequency of such.
Registering with the CFPB?
There are new regulations coming in December for vehicle and installment title lenders: A year from now, said lenders may be required to register their businesses with the CFPB.
Instabill has Diverse Debt Collection Solutions
As long as they maintain legality and legitimacy, Instabill will offer payment solutions for the debt collection and lending industries. Instabill merchant account managers can align such merchants with domestic and offshore banking solutions with fast approvals.
Speak directly with a merchant account specialist at 1-800-318-2713 to click the live chat option below.
