Debt Collectors #shorts

The Consumer Financial Protection Bureau released an advisory opinion on June 29, 2022, stating that the FDCPA bans debt collectors from collecting "pay-to-pay" or convenience fees unless relevant legislation or the arrangement generating the debt clearly permits the charge. According to the ruling, debt collectors may violate the FDCPA when employing a third-party payment processor that imposes such fees if the processor remits any money in conjunction with that fee. The CFPB considers convenience fees any expenses customers spend to pay a debt collector by phone or online.

The CFPB's ruling and press release follow previous statements on "junk fees." The ruling also signals to debt collectors and original creditors that the CFPB may scrutinize convenience fees more closely under the FDCPA or the Consumer Financial Protection Act's UDAAP (CFPA). Debt collectors charging convenience fees is illegal.

CFPB opinion overview
The CFPB's opinion builds on Bulletin 2017-01. It also clarifies the CFPB's restricted understanding of when the FDCPA authorizes convenience fees and possible responsibility when utilizing a payment processor that collects them.

FDCPA section 1692f(1) bans debt collectors from collecting "any sum (including interest, fees, charges, or expenses ancillary to the primary obligation) unless specifically allowed by the arrangement generating the debt or permitted by law." CFPB's advisory opinion reinforces its stance that:

Section 1692f governs convenience fees (1).
Under Section 1692f(1), debt collectors may only collect convenience fees if "(1) the debt agreement specifically authorizes the charge and some law does not prohibit it; or (2) some law expressly permits the charge, even if the debt agreement is silent." When the law neither approves nor bans a charge, it's not "legal." A debt collector cannot collect the charge unless the debt arrangement specifically allows it. When debt collectors use a payment processor to charge a convenience fee, they violate Section 1692f(1). #debt #debtcollector #fees #cfpb #credit #creditrepair

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About Limitless Culture and Mike Meza:
Hi, I'm Mike. I established Limitless Culture with a singular objective, to improve creditworthiness and provide credit education for regular, everyday people with fun and engaging content, DIY products, and (for some because no everyone needs it) monthly credit repair services for people with specialty disputing needs. I want to empower working-class people and their families to be able to take control of their credit files the right way.

[Goodvybesonly]

You should never pay a debt collector because once they buy the debt its no longer your debt.

[Vonzell]

Nice I have two of them on my report. Been fighting them for about 6 months. Figured it’s time to make a deal for deletion in return they receive some cash

[samjfive]

Love the content and the free game can we please slow the video down a lil 😂

[Whatthechae]

The way the arrow pointed to the dislike

[jabroski]

Leaving stuff up just long enough to read it

[GAvetlyfe]

I am currently waiting on a response from Jefferson Capitol...i have an account that should have been deleted 2 yrs ago...i have everything we agreed on...i sent copies last week so not sure if this should include them

[bigspender]

what about national credit systems they do pay for delete

[houkikker]

These are debt buyers not get the definition right.

[ThingsILove]

So you get a letter from them before you make a payment?

[GODEYES]

I disagree.when you know the laws I just get them deleted..