People file for bankruptcy protection for a wide variety of reasons- a loss in income, a failed small business, divorce, or crushing medical bills.
Despite these varying reasons, one thing that most of my clients have in common is the constant abuse from ruthless debt collectors. Just recently, one of my clients was threatened with physical violence for a $150 pay day loan that was two days late. Another was threatened with jail and possible kidnapping. All of these tactics are highly illegal but, for the most part, go unsupervised by state and federal authorities. Until now.
“Debt collectors and credit reporting agencies have gone unsupervised by the federal government for too long,” Richard Cordray, the Director of the newly established Consumer Finance Protection Bureau told reporters on Thursday. “It is time to provide the kind of oversight of these markets that will help ensure that federal laws protecting consumers in these financial markets are being followed.”
The newly created Consumer Protection Bureau was recently established to protect the American consumer from unscrupulous business practices. Richard Cordray, former Republican Attorney General from Ohio, is the head of this new agency. After years of unsupervised, outrageous and illegal behavior, hopefully Cordray will be able to go after illegal collection activities.
If you are the victim of illegal debt collection activity, contact us today for help. In most cases, filing for relief under the Bankruptcy Code compels debt collectors to back off or risk federal sanctions.