Sorry Repo Industry, No bone for you!
EDITORIAL
While everyone in the collections and repossession industries are watching in disbelief the proposed revisions to the Fair Debt Collections Practices Act (FDCPA) that would utterly destroy the entire collections and recovery cycles, there is one little ray of sunshine that they offered for compensation!
Buried at the bottom of Title IV of the Heroes Act is an odd bone thrown to debt collectors who can demonstrate that they have experienced financial losses incurred by loan forbearances. Section 110404 proposes to build into the FDCPA, a “Credit Facility” established by and governed by the Federal Reserve to provide log-term and low-cost loans until “after consumers’ debt payments resume.’’
Page 1044-1045
SEC. 110404. CREDIT FACILITY.
Section 812A(h) of the Fair Debt Collection Practices Act (15 U.S.C. 1692 et seq.), as added by section 110403, is amended by adding at the end the following:
‘‘(4) CREDIT FACILITY.—The Board of Governors of the Federal Reserve System shall—
‘‘(A) establish a facility, using amounts made available under section 4003(b)(4) of the CARES Act (15 U.S.C. 9042(b)(4)), to make long-term, low-cost loans to debt collectors to temporarily compensate such debt collectors for documented financial losses caused by forbearance of debt payments under this subsection; and
‘‘(B) defer debt collectors’ required payments on such loans until after consumers’ debt payments resume.’’.
Read the Entire “Heroes Act” Here
Considering that many collectors have been up to their ears in taking loan modification applications, which could include forbearance agreements, I’m struggling to imagine how anyone would demonstrate lost income resulting from forbearances. I’m not sure that the authors of this section really have any idea of how most collectors work or are compensated.
Conspicuously absent from any offer of compensation for the destruction of the industry that their bill would create, is the repossession industry, who obviously are not persons that they feel are worthy of anything but contempt.
All of this is pretty irrelevant anyhow, considering this bill was DOA from the start.
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