John Redding Quoted in Law360 Article, "NY Debt Collection Rules Could Become National Model"John C. Redding
John Redding was quoted in Evan Weinberger's Law360 article, "NY Debt Collection Rules Could Become National Model," on December 3, 2014.
Still, the CFPB regulates only firms that take in at least $10 million in receipts from consumer debt collection activities. As of January 2013, that constituted 175 companies, representing just 60 percent of the industry, according to bureau statistics.
So states taking up New York's mantle — especially large states with financial regulators that tend to take the side of consumers, like California — could bring even more widespread changes to the industry, Redding said.
If enough big states apply standards that resemble New York's, debt collection firms will have to determine whether simply pegging their practices to the highest standard would be cost-effective, Redding said.
"If they find that it is more efficient to go to the most restrictive standard and that works for business, then yes, I would expect that they would take the next step," he said.