Following the release of its final rule on debt collection, a blog post from the CFPB for consumers reviews how collectors can communicate with consumers and what’s allowed under the FDCPA; and Director Kathy Kraninger weighs in on the goal of the rule. Editor’s note: This article is available for members only.
11/6/2020 11:30
As part of its communications on the final debt collection rule issued Oct. 30, the Consumer Financial Protection Bureau issued a notice to consumers on current requirements under the Fair Debt Collection Practices Act and what the rule will help clarify when it takes effect in 2021.
CFPB Director Kathy Kraninger also wrote a blog post describing how clear rules of the road for debt collectors protect consumers and businesses, as well as explaining the bureau’s goal with the rule.
“Advances in technology in particular have transformed how we communicate, with cell phones enabling us to take a call or receive a text 24 hours a day in our neighborhood or on the other side of the globe,” Kraninger said in the blog post. “But debt collectors and consumers have been trapped in a time warp. They have been required to communicate with each other under standards Congress enacted in 1977. Until now.”
In ACA International’s review of the rule, it appears that it supports several key issues ACA has long sought clarity on, including safe harbor procedures for the use of voicemail messages and the ability to use modern forms of communication, such as text messaging and email (although with some arguably complex compliance burdens). ACA also continues to adhere to the FDCPA as it stands and to work with consumers to help resolve their accounts and communicate in a compliant way.
While several of ACA’s supported issues were included in the rule, some were not, and ACA will continue to highlight to the bureau areas that need to be improved upon, ACA previously reported.
“The bureau was granted the authority to write rules on debt collection practices and the changes will provide better protection for consumers, clearer operating procedures for debt collectors intent on following the law, and easier identification of the bad actors we will take action against,” Kraninger said in the blog post. “We are finally leaving 1977 behind and developing a debt collection system that works for consumers and industry in the modern world.”
As a reminder to members, the ACA Huddle CFPB Rule Series continues this month and recordings and copies of the presentations are available.
Related content from ACA International:
Member Alert: ACA Offers Initial Analysis of CFPB Debt Collection Rule
Compliance Complexities As Well As Clarity in CFPB’s Final Debt Collection Rule
ACA Huddle CFPB Rule Series: Making the Call on Limited Content Voicemail Messages