Re3 Conference panel discussion moderator and Intellaegis president John Lewis needed some time to comb through the debt collection regulation proposal released by the Consumer Financial Protection Bureau about two weeks ago.

While much of the CFPB’s latest material is geared toward third-party collections, Lewis cautioned repossession companies that are already struggling to maintain compliance demands given by their auto finance company clients.

To recap quickly, the CFPB explained its proposals under consideration would overhaul the debt collection market by capping collector contact attempts and by helping to ensure that companies collect the correct debt.

“I know small repo companies that went out of business as they lost contracts due to the oversight of scared lenders making them jump through hoops over things they thought they would have to monitor when the CFPB finally addressed debt collection,” Lewis said in a blog post on his company website.

“Sadly, rules like these new ones really don’t apply much to some small debt collection industries, like repossession for instance, other than their notes need to flow between other companies working the same accounts they work,” he continued. “Until there is more clarity from the CFPB, nothing will stop first-party lenders from mandating so many new rules on these small players that many good repo companies will be forced out due to their inability to afford the resources to keep up.

“One first-party auto lender, the largest I believe, actually recognized this in 2016 and they raised fees to repo companies, so some are taking a leadership role,” Lewis went on to say.

Lewis closed his blog post by drawing on his industry experience.

“The proposed rules are the most significant change the collection industry has seen in the 30 years I’ve been involved in collections, and as is the case with these regulatory boards, both state and federal, it seems to just be the start of what’s to come,” he said.

To help finance companies, repossession agent and other service providers abide by what’s coming down the regulatory highway, Used Car Week has two events on tap designed to help those players — the SubPrime Forum and the Re3 Conference. Used Car Week runs from Nov. 14-18 at the Red Rock Resort and Casino in Las Vegas.

For a look at the experts such as Lewis who are scheduled to appear at Used Car Week, go to our Agenda page here.