New consumer protection rules could help with debt management

People in Connecticut with past-due bills are likely already familiar with creditors and their sometimes harassing collection attempts. While there are rules in place that are meant to protect consumers from abusive debt collection practices, the protections are not as thorough as they could be. Newly updated rules could soon make life easier for those struggling with debt management while also fielding harassing attempts at debt collection.

Kathy Kraninger, the director at the Consumer Financial Protection Bureau, recently announced that the agency would be updating consumer protection rules. One of the proposed updates includes setting a clear limit regarding how many phone calls a debt collector can make to a single consumer in a week. The changes would also clarify what constitutes abusive practices and acts, which the 2010 Dodd-Frank Act prohibited.

However, consumers may not see these new protections any time soon. Kraninger recently stated that she did not believe rules created and implemented in a rushed fashion were effective. Instead, she hopes to implement these changes at some point in her five years with the CFPB.

For a long time, debt collectors have focused on harassing and deceptive practices to intimidate or scare consumers into paying. Collectors even sometimes engage in certain practices that are explicitly banned, but bank on the hope that consumers do not understand their rights. This can make it extremely difficult for many people in Connecticut to fully realize their debt management goals. For some, speaking with an experienced attorney might help them fully consider their options, including personal bankruptcy.