Insights on how the rule defines “communication,” “consumer” and “limited-content message.” Editor’s note: This article is available for members only.
11/13/2020 8:00
In case you didn’t hear, the Consumer Financial Protection Bureau just released its final debt collection rule to implement the Fair Debt Collection Practices Act. We know there is an overwhelming amount of content to process in the rule. The page count alone is intimidating. Some of you may feel lost, wondering how in the world you’ll ever digest all 653 pages. Don’t worry, we got your back!
While detailed analysis is forthcoming, in an attempt to simplify things out of the gate, we’ll be breaking into smaller, digestible parts some of the more important things members need to know in the rule. We’ll start with a primer on the rule’s definitions section and the limited-content message.
The rule restates several definitions in Section 1692a of the FDCPA, including the terms “debt” and “debt collector.” The definition of “consumer” is largely left intact, although the bureau reserves the right to “further define this term by regulation to clarify its application when the consumer is deceased.”
The rule adopts the FDCPA’s definition of a “communication,” which means “the conveying of information regarding a debt directly or indirectly to any person through any medium.”
But the CFPB adds a new term to the definition list: “attempt to communicate.” This new term means “any act to initiate a communication or other contact about a debt with any person through any medium, including by soliciting a response from such person,” and includes a “limited-content message,” also a new term which we discuss below.
The distinction between these terms is critical. Indeed, different sections of the rule are triggered depending on whether a collector’s contact with a person is an “attempt to communicate” or a “communication.”
Okay, so we learned a few definitions. But you may be asking yourself, what does this all mean to me as a practical matter? A lot. Let’s take an everyday example, what happens when you call a consumer and want to leave a voicemail message, but don’t want to risk an unauthorized third-party disclosure? This is the catch-22 the industry has been subject to for years when leaving voicemail messages. Enter “limited-content message.”
The rule identifies specific information collectors can and cannot leave in order for a voicemail to qualify as a limited-content message. The best part? If you follow the bureau’s directive when leaving a limited-content voicemail message, you no longer risk a third-party disclosure. Why? Because the message is an “attempt to communicate” and not a “communication.”
Now for some guidelines. According to the rule, a limited-content message is a voicemail message that must include:
- The debt collector’s business name that does not indicate agency is in the collection business;
- A request for a reply from the consumer;
- The name(s) of live person(s) the consumer can contact to reply; and
- A return phone number(s).
A limited-content message may additionally include:
- A salutation;
- The message date and time;
- A suggested date and time for the consumer to reply; and
- A statement that if the consumer replies, they may speak to any of the company’s reps or associates.
Note that the limited-content message cannot include any information beyond the required (“must”) information and the optional (“may”) information set forth in the rule and bulleted above.
With those rules of the road in mind, here are a few examples of LCMs, courtesy of the bureau itself:
Limited-content message with required content only:
“This is Robin Smith calling from ABC Inc. Please contact me or Jim Johnson at 1-800-555-1212.”
Limited-content message with required and optional content:
“Hi, this is Robin Smith calling from ABC Inc. It is 4:15 p.m. on Wednesday, September 1. Please contact me or any of our representatives at 1-800-555-1212 today until 6:00 p.m. Eastern time, or any weekday from 8:00 a.m. to 6:00 p.m. Eastern time.”
Although the rule won’t become effective for at least another year, members may want to use these guidelines as a starting point to review your collectors’ scripts.
Members may read more in-depth analysis of communication requirements in the CFPB’s final debt collection rule here. Next in our summary of the rule will be communications in connection with debt collection, including email.