Think You Might Owe the CFPB Money in Penalties? Read This.
Tomorrow the CFPB will publish final rules regarding the collection of money owed to the Consumer Financial Protection Bureau. It is very possible that fines levied against companies and individuals will fall under the rules.
With tougher enforcements to come from the CFPB in the debt relief space, participants should be aware of the powers to collect the CFPB has stated they have and may implement.
According to the soon to be published document, the CFPB will have the authority to:
- Administratively Offset – May request that another Federal agency withhold money payable to the debtor or held by the agency for the debtor or referring the debts to the Secretary of the Treasury or a designated debt collection center for collection under the Treasury’s centralized offset program.
- Administrative Wage Garnishment – The CFPB may collect debts by garnishing the wages of individuals employed outside the Federal Government. This includes persons employed by the private sector.
- Tax Refund Offset – The CFPB may also seek to recover a legally enforceable, past-due debt owed to the United States by requesting that the Financial Management Service of the Department of the Treasury offset all or part of a tax refund to a debtor by the amount of the debt and pay such money to the Bureau
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