U.S. Crackdown on Debt Collectors Takes Aim at Large Banks

Banks supervised by the Consumer Financial Protection Bureau now face penalties if they mistreat consumers while collecting debts, the latest move in a broader crackdown on debt-collection practices the agency has pursued since last year.

The new policy, which follows efforts to rein in abusive credit-card and lending policies, will plug a gap in federal anti-harassment law that generally excluded creditors who collected debt themselves, rather than hiring third parties.