While problems in the mortgage industry still dominate the news, some financial industry insiders are warning banks and debt collectors to get ready for more scrutiny over how they handle other types of debt – especially credit cards and student loans.
A recent article in the American Bankers Association’s Banking Journal pointed out that since the CFPB’s doors have been open, they have received thousands of complaints about credit card and student loan issues. In the first of two reports last fall about private student loans, the CFPB found “surprises, run-arounds and dead ends” similar to those in the mortgage servicing business.
In addition, starting this month the CFPB will be examining large debt collection companies and looking for bad practices that violate consumer protection laws.
So “prepare now for the change to come,” the article says. And we here at CU like the sound of that!