Collection and Credit Firms Facing Broad New Oversight

[ProSense]

Collection and Credit Firms Facing Broad New Oversight

Debt collectors and credit reporting companies are bracing for intense scrutiny after the government’s consumer finance watchdog unveiled a broad plan to regulate financial firms that have largely evaded federal oversight.

On Thursday, the Consumer Financial Protection Bureau proposed regulations that would allow the agency to supervise those two controversial corners of the finance industry, which have drawn complaints of aggressive tactics and unfair practices.

The draft rule is the most significant proposal yet to emerge from the consumer agency — a symbol of the government’s new regulatory powers and a favorite target of Congressional Republicans — and the first of several efforts to police financial companies that are not banks.

“Debt collectors and credit reporting agencies have gone unsupervised by the federal government for too long,” Richard Cordray, the bureau’s director, 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.”

- more -

http://dealbook.nytimes.com/2012/02/16/consumer-bureau-proposes-first-crackdown/

Cordray is off to a great start.

Richard Cordray, consumer bureau announce new supervision of payday lenders
http://upload.democraticunderground.com/1002187745

Cordray’s first target: The housing crisis
http://www.democraticunderground.com/1002163578

[DCKit]

1. After 30 years of deregulation and the introduction of new financial scams...

he's more than got his work cut out.

I'll bet a whole bunch of folks, from payday lenders to bank CEOs, would go into fits if he just said the word "usury".