CFPB Opens Comment Period on Proposed Debt Collection Rule
The proposed rule to update the Fair Debt Collection Practices Act will have a 90-day comment period.
5/21/2019 7:00 AM
The Consumer Financial Protection Bureau published its proposed rule on the Fair Debt Collection Practices Act in the Federal Register on May 21, 2019, meaning public comments are due by Monday, Aug. 19, 2019.
In the coming days and weeks, ACA International will provide education to its membership regarding the potential implications of the proposed rule. The association will also solicit feedback from members in order to provide advocacy on behalf of the industry and guidance to the CFPB to ensure the best possible outcome for ACA members.
It is critical for the industry to be engaged in this process and to work closely with ACA as it continues to advocate for additional clarity for the accounts receivables management industry.
In its current state, the proposed rule includes:
- Certain disclosures, such as an itemization of the debt and plain-language information about how a consumer may respond to a collection attempt, including by disputing the debt.
- Methods by which debt collectors may lawfully use newer communication technologies, such as voicemails, emails and text messages.
- Methods by which collectors may provide required disclosures electronically, for example, by email or text message.
- Call frequency limits of no more than seven attempts by telephone per week; prohibiting call attempts within 7 days of a telephone conversation.
- Out-of-statute debt collection, by prohibiting suits and threats of suit on time-barred debts and requiring communication with the consumer before credit reporting.
If you missed ACA’s members-only Hot Topic webinar “Notice of Proposed Rulemaking: What Does it Say?” in reference to our initial thoughts on the proposed rule including steps agencies should take to gather feedback and what steps ACA members should take to provide thoughts on the rule to ACA and the CFPB, a recording is available.
Members are encouraged to review the proposed rule (text of rule starting on page 447). ACA will continue to work closely with the CFPB to advocate on behalf of the accounts receivable management industry and to ensure that the final rule will be beneficial for the debt collection industry and consumers alike. Please stay tuned to ACA’s Daily Newsletter for more information.
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