In a strange turn of events it seems likely now that even the collections industry will fall under the vast reach of power under the new Bureau of Consumer Financial Protection (BCFP), housed under the Federal Reserve.
Of course this would be yet another example of an industry that is facing new regulation in response to the economic crisis which they did nothing to create, while those responsible were left out of the new bill because it was “too difficult” to deal with at this time.
Those in the collections industry thus far are seemingly disheartened by the over-reaching regulations and quick push to get the bill approved before first understanding the impact on those industries. This is somewhat understandable seeing as collections agencies are already tightly regulated and follow strict laws and outlines defined by the Fair Credit Act, by the Federal Trade Commission. Many in the collections industry are wondering specifically in new regulations could be soon implemented without though or regard to eliminating jobs, as has been demonstrated thus far with the financial reform bill.
ACA International, the association of professional businesses and individuals involved in the credit and collection industry, will reportedly attempt to work closely with the new BCFP in order to hopefully reach a fair balance on any newly imposed regulations.
It seems that other than creating more work for lawyers, the new BCFP will certainly be eliminating thousands of jobs once new regulations are implemented to countless industries. It is very un-nerving to already see them aiming to regulate industries, such as collections, that don’t actually deal with finance at all. I for one hope this does not eliminate jobs in the long run for our friends in the collections industry, who are doing a simple, straightforward, and regulated task of collecting debt on behalf of the lender. What’s next, do we regulate the office supply stores that sell pens to banks and payday lenders?