John Redding & Walter Zalenski Quoted in Reuters Article, "U.S. Consumer Agency Seeks to Overhaul Debt Collection Industry"John C. Redding, Walter E. Zalenski
John Redding and Walter Zalenski were quoted in Lisa Lambert's Reuters article, "U.S. Consumer Agency Seeks to Overhaul Debt Collection Industry," on Thursday, July 28, 2016.
The industry has awaited the overhaul proposal since 2013 and CFPB had penalized a number of large debt collectors in recent years. The CFPB receives thousands of complaints each month about debt collection, more than any other area.
"If you look at their analysis, they are stating that everything has either a low or moderate cost to market participants. They’ve done this in the past and I suspect the costs to market participants are going to be significant," said John Redding, partner at Buckley Sandler, a firm specializing in financial services law.
He added that new requirements on collecting and sharing information would lead to, at minimum, expensive modifications to the technology firms use to track debts.
The proposal could encourage consumers to dispute all debts, even those rightly owed, said Walter Zalenski, also a partner at Buckley Sandler. That could lead to more borrowers manufacturing disputes that have no legitimate basis, he said.