CFPB Highlights Importance of Communicating with Creditors and Debt Collectors

The bureau recently shared updated reports on how consumers can protect their credit and manage debt that hinge on one factor: communication.

9/1/2020 8:00 AM

AdvocacyCFPBNewsCOVID-19
CFPB Highlights Importance of Communicating with Creditors and Debt Collectors

The Consumer Financial Protection Bureau recently released updated articles on the importance of communicating with debt collectors and lenders to help consumers resolve their accounts and protect their credit.

In one article, “Protecting your Credit During the Coronavirus Pandemic,” the CFPB reports: “If you are having trouble paying your bills, it’s important to reach out to your lender or creditor. Many lenders and creditors have announced proactive measures to help borrowers impacted by COVID-19. The Coronavirus Aid, Relief, and Economic Security (CARES) Act has forbearance and credit reporting requirements that may apply to your situation.”

Debt collectors are here to help and have hardship program options available to consumers in need.

“As with other natural disasters and emergencies, your creditors or lenders may be willing—and in some cases are required—to provide forbearance, loan extensions, a reduction in interest rates, and/or other flexibilities for repayment,” the CFPB reports. “Some lenders are also saying they will not report late payments to credit reporting agencies or are waiving late fees for borrowers due to this pandemic. Under the CARES Act, in certain situations, lenders are required to report your accounts as current.”

ACA International member companies are well versed in setting up alternative payment arrangements for consumers experiencing unexpected hardships or, for example, during natural disasters like floods or storms, ACA recently reported.

A legitimate third-party debt collector will follow Fair Debt Collection Practices Act requirements and will want to work with consumers.

ACA also covered consumer tips on debt collection in ACA Cast with Jessica Hearn, the chief financial officer and compliance director with Universal Fidelity in Katy, Texas, “Why is a Debt Collector Calling Me?” and “Identity Theft: Don’t Fall Victim to the Threat.”

Related Content from ACA International

CFPB Highlights Work of Legitimate Debt Collectors


Follow ACA International on Twitter @ACAIntl and @acacollector, Facebook and request to join our LinkedIn group for news and event updates. ACA International members are welcome to submit news items for possible publication to comm@acainternational.org. Visit our publications page for news submission guidelines and subscriptions to ACA Daily, Collector magazine and Pulse.

Advertising is available for companies wishing to promote their products or services. Be sure to visit the ACA Events Calendar on the Education and Training page to view our listing of upcoming CORE Curriculum and Hot Topic seminars featuring critical educational opportunities for your company.


Subscribe to ACA Daily NEWSROOM

CFPB Highlights Importance of Communicating with Creditors and Debt Collectors

The Consumer Financial Protection Bureau recently released updated articles on the importance of communicating with debt collectors and lenders to help consumers resolve their accounts and protect their credit.

In one article, “Protecting your Credit During the Coronavirus Pandemic,” the CFPB reports: “If you are having trouble paying your bills, it’s important to reach out to your lender or creditor. Many lenders and creditors have announced proactive measures to help borrowers impacted by COVID-19. The Coronavirus Aid, Relief, and Economic Security (CARES) Act has forbearance and credit reporting requirements that may apply to your situation.”

Debt collectors are here to help and have hardship program options available to consumers in need.

“As with other natural disasters and emergencies, your creditors or lenders may be willing—and in some cases are required—to provide forbearance, loan extensions, a reduction in interest rates, and/or other flexibilities for repayment,” the CFPB reports. “Some lenders are also saying they will not report late payments to credit reporting agencies or are waiving late fees for borrowers due to this pandemic. Under the CARES Act, in certain situations, lenders are required to report your accounts as current.”

ACA International member companies are well versed in setting up alternative payment arrangements for consumers experiencing unexpected hardships or, for example, during natural disasters like floods or storms, ACA recently reported.

A legitimate third-party debt collector will follow Fair Debt Collection Practices Act requirements and will want to work with consumers.

ACA also covered consumer tips on debt collection in ACA Cast with Jessica Hearn, the chief financial officer and compliance director with Universal Fidelity in Katy, Texas, “Why is a Debt Collector Calling Me?” and “Identity Theft: Don’t Fall Victim to the Threat.”

Related Content from ACA International

CFPB Highlights Work of Legitimate Debt Collectors


Follow ACA International on Twitter @ACAIntl and @acacollector, Facebook and request to join our LinkedIn group for news and event updates. ACA International members are welcome to submit news items for possible publication to comm@acainternational.org. Visit our publications page for news submission guidelines and subscriptions to ACA Daily, Collector magazine and Pulse.

Advertising is available for companies wishing to promote their products or services. Be sure to visit the ACA Events Calendar on the Education and Training page to view our listing of upcoming CORE Curriculum and Hot Topic seminars featuring critical educational opportunities for your company.


Subscribe to ACA Daily NEWSROOM

Loading...

Loading...

Scroll to Top