5 Possible Ways to Regulate the Debt Collection Industry

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Stopping Debt Collectors' Drag no the Economy

Capitalism always provides a way for someone to win, and thus some fortunes are improved during even the worst of times. In the US, many who profit more during a recession are easy to think of as "bad guys." Repo men, short sellers and debt collectors fall into this category, but they're simply doing what they do. Debt collectors are perhaps the worst of the lot because in addition to living off the misery of others, regulation of the debt collection business is badly conceived and administered, and it's overregulated. Given this lack of effective oversight and the huge amount of newly-minted bad debt floating around out there, ravenous debt collectors have far too many opportunities to abuse people struggling to get through life in this abysmal economy. All of this drags our economy, not to mention our spirits, down further.

So if Washington wants to show it's serious about dealing with the issue of debt collection abuse and wants to keep the financial boogeyman out of your 13-year-old daughter's life, Congress needs to stop partisan bickering about the funding and authority of the CFPB and appoint a strong director—right now. Elizabeth Warren was the president's first choice for that job and, as any reader of this column knows, I believe she would make an excellent chief executive. Now there is word circulating that the president may choose Raj Date—a good man with an excellent background—instead of Warren to circumvent the problem that Republicans seem to have with her. Although I have still not heard one good argument against Warren's appointment, one of them needs to be appointed immediately so that the Bureau can hit the ground running on July 21.

Perhaps to make our point we'll have to start robo-calling Congressmen—at home at 10 p.m.

This work is the opinion of the columnist and in no way reflects the opinion of ABC News.

Adam Levin Chairman and cofounder of Credit.com and Identity Theft 911. His experience as former director of the New Jersey Division of Consumer Affairs gives him unique insight into consumer privacy, legislation and financial advocacy. He is a nationally recognized expert on identity theft and credit.

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