President Joe Biden has formally declared a major disaster in Florida. ACA members should have plans in place to modify consumer outreach strategies and monitor areas with disaster declarations.
09/01/2023 11:30 A.M.
4 minute read
Hurricane Idalia crashed into Florida’s Gulf Coast on Wednesday. The storm started as a powerful Category 3 hurricane and downgraded to a post-tropical cyclone by Friday as it moved away from the Atlantic coast.
Florida, Georgia, North Carolina and South Carolina announced states of emergency in advance of the storm.
The storm’s flooding left neighborhoods submerged and its 125 mph winds destroyed homes and snapped power lines. As of Friday morning, PowerOutage.us reported that approximately 125,000 people in Florida and Georgia were still without electricity. AccuWeather estimates the total damage and economic loss from Hurricane Idalia is $18 billion to $20 billion.
President Joe Biden has formally declared a major disaster in Florida. To view a current list of all areas with disaster declarations, visit the SBA’s website and FEMA’s website.
Here’s a rundown of what you should keep in mind, as well as a key ACA SearchPoint document to help guide your communications with consumers in the affected areas.
North Carolina
North Carolina’s S.B. 496 includes some limits for debt collection calls during a state of emergency. Whenever (i) a state of disaster is proclaimed for the State or for an area within the State under G.S. 166A-19.21 or whenever the President of the United States has issued a major disaster declaration for the State or for an area within the State under the Stafford Act, 42 U.S.C. Section 5121, et seq., as amended and (ii) if the Commissioner has issued an order declaring this section effective for the specific disaster: Collection agencies. – Except as provided in subsection (c) of Section 10 of the law, collection agencies shall discontinue attempts to collect debt against their customers who reside within the designated area in the proclamation or declaration during the deferral period.
The deferral period means collection agencies shall give their customers who reside within the designated area the option of deferring their debt payments that are due during whichever is earlier:
- The time period covered by the proclamation or declaration of the emergency, or
- The time period prior to the expiration of the order declaring Section 10 effective for the specific disaster.
The deferral period must be 30 days from the last day the debt payment may be made under the terms of the policy or contract.
Internal Revenue Service Tax Relief
The Internal Revenue Service announced expansive tax relief for individuals and businesses affected by Idalia in parts of Florida. These taxpayers now have until Feb. 15, 2024, to file various federal individual and business tax returns and make tax payments.
The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA). Currently, 46 of Florida’s 67 counties qualify. Individuals and households that reside or have a business in these counties qualify for tax relief, but any area added later to the disaster area will also qualify. The current list of eligible localities is available on the disaster relief page on IRS.gov. Learn more here.
Consumer Financial Protection Bureau Financial Toolkit
The Consumer Financial Protection Bureau issued a guide for consumers affected by Idalia, with suggestions on how to handle their finances during a disaster or emergency.
Within the guide are resources to help consumers recover, such as tackling housing issues, protecting finances during an emergency, dealing with property damage and managing bills. The bureau also shares tips if you are helping others rebuild, including ways to safely send money through mobile apps.
The CFPB also offers a list of resources from the Federal Emergency Management Agency and the American Red Cross, among others.
Reminder on Communication Procedures During Disasters and Emergencies
ACA International members should review their communication plans to help consumers impacted by this natural disaster.
To view any disaster declarations resulting from the hurricane, you can visit the FEMA website.
ACA members have strong compliance management systems in place to manage calls and modify consumer outreach strategies to consumers in areas affected by the hurricane or where do-not-call orders are in effect. Accounts receivable management companies can implement hardship programs to limit calls to consumers and/or set up payment plans to help them manage their accounts when communications resume.
ACA encourages members to use their judgment and discretion when contacting consumers who may be impacted by the state of emergency at this time and consult with their counsel for guidance if needed.
For more compliance information, visit ACA’s SearchPoint Library, which includes a document on Natural Disasters & Collection Efforts for members.
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