Richard Cordray, Director of the federal Consumer Financial Protection Bureau, recently spoke at the National Association of State Attorneys General. Cordray, the former Attorney General of Ohio, indicated that the CFPB and states are “meeting regularly to discuss the challenges posed to our mutual constituents by payday loans, foreclosure scams, auto loans, and debt collection.”
According to a Bloomberg article, much of the focus is on sharing information via the Federal Trade Commission’s complaint clearinghouse, called the Consumer Sentinel network. If all states were to contribute to the database, it would allow investigators to more easily pinpoint trends where debt collectors and other companies outside of the mainstream financial system cross the line into illegal behavior. Moreover, Cordray expressed strong support for a collaboration among attorneys general to develop a “national strategic plan” regarding debt collection agency abuses.