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Debt Collection 101: Episode 15 – The CFPB’s New Leader and the Future of Debt Collection


What is going to happen to the collections industry now that the CFPB has a new director?

Hey everyone and welcome to another edition of Debt Collection 101 on Arbeit U. Thanks for joining us today. We want to talk about the recent news involving the Consumer Financial Protection Bureau or CFPB for short and its new leadership. We want to share the news about the new Director of the CFPB if you haven’t already heard as well as ask the question, what does this mean for the debt collection industry? Watch the video and see if we answer some of your questions you might be thinking. A written transcription of the video is also below if you prefer reading instead.

Welcome Back!

Hey everybody it’s Alex and Spencer again. Welcome back to another episode of Debt Collection 101 on Arbeit U. Hopefully everybody’s having a wonderful holiday season. Yes, tis the season. I think there’s a lot of good news people are probably pretty excited today in the collection industry., I would imagine.

The new director of the CFPB

Mick Mulvaney, I guess is the new head of the CFPB as of this morning or yesterday. The counsel for the CFPB agreed with President Trump and said Leandra English is not the rightful heir to the CFPB. Rightful heir, she’s not next in line to the throne. Right, for now at least I mean I’m going to guess there’s going to be a bit more of a battle, I’m sure. It’s not going just to go away, and it seems like you know I would imagine Democrats are pretty upset because Mick Mulvaney from my understanding is that he despises the CFPB. Yea and so here’s the thing right, whether it doesn’t matter where he stands right, anything is better than what was currently happening right, so any mix-up appointed by the Trump administration is just it has to be better right?

I guess there were a lot of agencies that I think actually, I mean I don’t think they liked it, but they got on along on the boat with it right? They jumped on the CFPB boat. Well yea,  these are the rules. They made a success out of it because they realized a lot of other agencies aren’t following the rules. Right, so it’s like I know this is going to be around, I’m going to do it and now I’m going to be more successful because of it. There are all of these other people that don’t like it, but at the end of the day, it’s the law of the land. At the time it was, so now I’m sure there’ll be a little less regulation. I’m not sure exactly what he has planned for the CFPB, and I think that there’s not a lot out there right now.

Delicious donuts for the office

He did bring donuts. Yea, on the first day on the job it was a nice thing to do I’m sure. You think you could bring in Dunkin Donuts? I feel like he could have gotten a better version of donuts. Well, we’re from Buffalo, so we have Tim Hortons. Yea, but you are already competing and your other persons there when what if she brought local deli donuts? People like Dunkin Donuts. Maybe. You think Dunkin Donuts will advertise it?  Probably.

What are your thoughts on the matter?

We want to know everyone’s thoughts. Yeah, who cares what we think. What do you want Mick Mulvaney to do with the CFPB? Realistic responses, please. We want to know like a sensible solution. Saying just eliminating the CFPB is not happening. So a practical approach you know, try and put yourself on both sides; in the agency owners as well as the consumer’s shoes and a realistic strategy for both people.

To a certain extent, there is value in this. I mean at the end of the day, that’s the only thing that’s going to work, something you can’t just like try and lop side it to where it’s only going to benefit agencies. Yea and collections are just one segment, but we’re Debt Collection 101, focused on collection agencies at the end of the day. I think the only thing that’s going to work and I think it’s possible to find is a balance, but you got to see something that works for both. I’d like to hear what people are watching would suggest. What’s something you want changed? What’s something that you don’t wish to change? It would be interesting if there’s something you like that was implemented. Yea, comment below with your opinion. We’d love to hear it; we do read those. Like and subscribe. We want to hear everyone’s opinion here on this. We’ll see you next week.

Closing Thoughts

Want to learn more about what’s going on with the CFPB? Check out this article from the ACA news on how a proposed changes to the debt collection industry from the CFPB.

 

This is big news for the industry and we would love to hear your thoughts. Leave a comment below.

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Emily Faracca

Emily is the content creator at Arbeit. She is an aspiring gardener, enjoys bike rides through her neighborhood, and is a big fan of a good cocktail. As much as she loves her hometown of Buffalo, N.Y., she absolutely loves to travel, and at the top of her bucket list is a trip to Sicily, where she still has living relatives.

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