The Consumer Financial Protection Bureau (CFPB) Puts A Halt On Lenders Trying To Take Funds From Borrower Bank Accounts
In today’s economy, with some people going through tough times and hardships, people get in dire straits. From these thoughts, people are desperate, and they need money, fast. For people, their first plan of action is to call different debt agencies, to see which one is willing to work with them. Once, the company lends the money to the borrower, the borrower is responsible for each of the monthly payments per month.
But, as time goes by, borrowers forget about that monthly payment, and go on and do other things without thinking about it. This leads to an opportunity for a debt collector to make their move to withdraw the money from the borrower’s bank account. When lenders are unsuccessful with withdrawing from the borrower’s accounts, it can have a serious effect on their account, such as high fees for overdrafts, insufficient funds, closing of accounts, and even no access to a lender’s financial services.
Also, in an effort to assist with debt collection, the Consumer Financial Protection Bureau (CFPB), will limit each lender to make two attempts to get the money from the borrower. Read article here The CFPB stepped in because they saw that lenders have been having a hard time getting their money.
As lenders have a tough time getting the money from the borrowers, it can be a much bigger burden for the borrower because they would have to pay out more money in the future for fees, not being able to open a new account at another bank, having their existing accounts closed, and having to go to more expensive check cashing places for paying bills, and other responsibilities.
The best thing to do is if you ever get into a fix, and you need to borrow money from different debt collection services, please do your best to make your monthly payment.
tags: debt collection service, debt collection, debt collector, debt agencies