ACA members cover where to start with accounts related to decedent debt. The ACA Huddle series on part two of the rule continues through Jan. 15. Editor’s note: This article is available for members only.
1/13/2021 14:00
The updated definition of “consumer” in the CFPB’s final debt collection rule is a key factor when it comes to collecting decedent debt, according to a presentation from James R. Bedell, general counsel at AscensionPoint Recovery Services LLC, Jack Brown III, president of Gulf Coast Collection Bureau Inc., and Heath Morgan, partner at Malone Frost Martin, during the Jan. 13 ACA Huddle.
As a refresher, if the debt collector knows or should know that the consumer is deceased, and if the debt collector has not previously provided the validation information to the deceased consumer, a person who is authorized to act on behalf of the deceased consumer’s estate operates as the consumer for purposes of Section 1006.34(a)(1) of the Fair Debt Collection Practices Act, ACA International previously reported.
The CFPB’s summary of the rule further clarifies: “Consumer’ now includes both living and deceased consumers. As a result, the debt collector must provide the validation notice either to the living consumer, or, if the debt collector knows or should know the consumer is deceased prior to providing the validation notice, to the person authorized to act on behalf of the deceased consumer’s estate (e.g., an executor, administrator, or personal representative).”
The goal of the CFPB’s rule (see page 23) is to ensure individuals trying to resolve a deceased consumer’s debt have the same legal right to receive a validation notice, dispute debt and request information about the original creditor and decrease risk of “consumer harm,” according to the presentation.
Brown, Bedell and Morgan also reviewed steps to confirm the identity of the authorized contact for a deceased consumer and how the model validation notice can be modified for a decedent debt account. A key step is making sure the notice does not imply the authorized representative for a deceased consumer’s estate is responsible for paying the debt, Bedell said.
Here are a few other takeaways from the webinar:
- Take steps to verify the authorized party for the deceased consumer.
- Identify practices for working with decedent debt in your call scripts and written policies and procedures.
- Communicate with clients who have decedent debt accounts to make sure you’re on the same page about those policies and procedures and that they align with applicable state laws.
ACA Huddle CFPB Rule Series Webinars Continue
ACA’s panel of experts continues to review the comprehensive rule and will be providing detailed analysis and compliance resources throughout this series of complimentary webinars, which continue through Jan. 15. Log on to acainternational.org and select My ACA to subscribe to Member Alerts under email subscriptions.
On Thursday, Jan. 14, Tamar Yudenfreund, senior director, public policy at Encore Capital Group, David Schultz, partner at Hinshaw & Culbertson LLP, and Dennis J. Barton III, owner and managing attorney of The Barton Law Group LLC, will discuss time-barred debt.
The final webinar in this series will review medical debt collection compliance under the new rule with Pam Kirchner, CEO of BCA Financial Services Inc., and Shawn Gretz, president of Americollect.
Register for the remainder of the series and view archived presentations here.
Thank you to the sponsors of the ACA Huddle CFPB Rule Series, Neustar, Ontario Systems and Connect International.
ACA members can also download the ACA Mobile app for reminders on the upcoming ACA Huddle webinars and listen to the presentations, live or recorded, on the go.
Related Content from ACA International
Member Alert: Reviewing the CFPB’s Latest Amendments to Regulation F