Last week, the Consumer Financial Protection Bureau issued a report on "several areas of concern related to relief provided in response to the COVID-19 pandemic, including the Centers for Disease Control and Prevention (CDC) eviction moratorium. Some consumers reported facing homelessness because of the negative impact of an eviction on their credit history reported by debt collectors. Consumers were also deprived of the full benefit of the economic impact payments as a result of overdraft practices at some financial institutions, and not all student loan borrowers were able to get the timely information and assistance they needed from their student loan servicer to get the full benefit of the variety of federal loan forgiveness, cancellation, and discharge programs offered through the CARES Act."
The report, which the CFPB calls a "complaint bulletin," is here.
If the CFPB doesn’t tighten up on regulations or add new more restrictions to stop illicit activities or unlawful collections by mostly unsavory greedy debt collectors innocent less fortunate people will be destroyed by agressive and oppressive tactics used by many Esq’s. Courts have been extremely lenient on less than truthful complaints filed lacking evidence or accurate debt validation. Consumers have been savaged by dishonest debt collectors, rule violating Esq’s, and Courts that seem to wink or nod at complaints that are facially flawed or deficient. Until the Judiciary takes steps to weed out defective or illicit complaints consumers will be destroyed with hyper inflated judgments that ultimately ruin their futures. Most illicit debt collection targets minorities or POC who are less likely to have competent representation.