The current penalty for violating the FDCPA is "not less than $100 and up to $1000." Further, the violations cannot be "stacked" so those violating the law 10 times on one debt, will generally only face the maximum of a $1000 penalty. Punitive damages are hard to prove. A $1000 penalty is not a deterrent to the debt collection industry, and too low to get most attorney's interest is taking these cases. If we want to see the law upheld, raise the penalty to $10,000 per violation - and you'll see most of these characters clean up their act and stop using abusive collection tactics.
Give Consumers Fair Notice and A Chance to Bid on Their Own Debts When Banks Sell Defaulted Obligations to Debt Buyers
When a consumer falls behind on loan or credit card payments, the bank often “sells” the account to a debt buying company for a few pennies on the dollar.
Debt buyers contribute nothing to society. Yet, they are allowed to obtain windfall profits by pursuing impoverished consumers for the full face value of such debts. This is unfair. If a bank is going to sell a consumer’s debt for pennies on the dollar, the bank should be required to notify that consumer, and allow that consumer a fair chance to bid on and purchase his/her own debt, on terms just as favorable as the terms offered to any other debt buyer. I hope the CFPB will consider new rules in this regard.
Please note there is currently a petition on the White House website for this issue at:
https://petitions.whitehouse.gov/petition/give-consumers-fair-notice-and-chance-bid-their-own-debts-when-banks-sell-defaulted-obligations-debt/FRMdMMxb
It was initiated here: http://www.californiacollectiondefense.com/please-sign-petition-allow-consumers-buy-debts/
Thank you.
Determined1
1
The current penalty for violating the FDCPA is "not less than $100 and up to $1000." Further, the violations cannot be "stacked" so those violating the law 10 times on one debt, will generally only face the maximum of a $1000 penalty. Punitive damages are hard to prove. A $1000 penalty is not a deterrent to the debt collection industry, and too low to get most attorney's interest is taking these cases. If we want to see the law upheld, raise the penalty to $10,000 per violation - and you'll see most of these characters clean up their act and stop using abusive collection tactics.
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Determined1
2
Give Consumers Fair Notice and A Chance to Bid on Their Own Debts When Banks Sell Defaulted Obligations to Debt Buyers When a consumer falls behind on loan or credit card payments, the bank often “sells” the account to a debt buying company for a few pennies on the dollar. Debt buyers contribute nothing to society. Yet, they are allowed to obtain windfall profits by pursuing impoverished consumers for the full face value of such debts. This is unfair. If a bank is going to sell a consumer’s debt for pennies on the dollar, the bank should be required to notify that consumer, and allow that consumer a fair chance to bid on and purchase his/her own debt, on terms just as favorable as the terms offered to any other debt buyer. I hope the CFPB will consider new rules in this regard. Please note there is currently a petition on the White House website for this issue at: https://petitions.whitehouse.gov/petition/give-consumers-fair-notice-and-chance-bid-their-own-debts-when-banks-sell-defaulted-obligations-debt/FRMdMMxb It was initiated here: http://www.californiacollectiondefense.com/please-sign-petition-allow-consumers-buy-debts/ Thank you.
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