New compliance aid answers more than two dozen questions pertaining to limited-content messages and call frequency issues.
10/4/2021 8:00
The Consumer Financial Protection Bureau has published Debt Collection Rule FAQs for Reg F, containing questions and answers that pertain to compliance with the rule. The FAQ covers limited-content messages and call frequency issues, and answers questions such as, “Are Zortman voicemails considered limited-content messages?” and “How long is a consumer’s direct prior consent valid?”
The bureau describes the FAQ as a “compliance aid,” which presents “the requirements of existing rules and statutes in a manner that is useful for compliance professionals, other industry stakeholders, and the public,” according to a policy statement in the Federal Register published in 2020. “Compliance [a]ids may also include practical suggestions for how entities might choose to go about complying with those rules and statutes. But they may not address all situations. Where there are multiple methods of compliance that are permitted by the applicable rules and statutes, an entity can make its own business decision regarding which method to use, and this may include a method that is not specifically addressed in a [c]ompliance [a]id.”
In addition to limited-content messages, the FAQ covers presumptions and excluded calls under the Reg F telephone call frequency requirements.
In a letter to incoming CFPB Director Rohit Chopra last week, ACA CEO Mark Neeb noted that the bureau had not yet provided FAQs for the Debt Collection Final Rules even though the implementation date is just weeks away. Neeb encouraged the bureau to “issue frequent (possibly quarterly) FAQs to help explain regulatory expectations. Creating clear expectations for compliance ultimately benefits consumers, while also providing much-needed transparency about expectations within the industry.”
He added that providing these FAQs in a timely and understandable manner is critical, particularly for small businesses.
Chopra’s director nomination was confirmed by the U.S Senate on Sept. 30, 2021, ACA previously reported. He is expected to be sworn in at the White House sometime this week.
In the letter to Chopra, Neeb also explained that ACA supports the use of formal advisory opinions in addition to FAQs, including the Advisory Opinion Program.
“Entities often seek an opinion from a regulatory agency because a critical issue arises that requires explanation,” Neeb said. “This may be within the course of litigation or pending litigation or necessary for ongoing compliance, and time is of the essence. Furthermore, courts often give deference to Agency-issued advisory opinions, which provides further support for their utility. Scenarios that arise for regulated entities are sometimes overlooked in the consideration of a rule. Industries change, and in the case of the debt collection market, new and existing technologies may provide enhancements to formerly standard procedures. Advisory opinions may assist in the development of best practices on an ongoing basis. These opinions should be used to address difficulties in understanding compliance expectations.”
Read the new Debt Collection Rule FAQs here.
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