ACA’s grassroots advocacy campaign is a critical opportunity to represent the industry’s voice in comments responding directly to the CFPB and consumer advocates. Editor’s note: This content is available to members only.
8/9/2019 9:30
It’s time to act. Consumers along with their advocate organizations are lobbying for increased restrictions on use of modern communications methods deployed by debt collectors as reflected in recent comments submitted to the Consumer Financial Protection Bureau on the proposed debt collection rule.
As members are aware, this is a milestone moment for industry engagement as it marks the first time in more than 40 years the Fair Debt Collection Practices Act will be updated.
So far, more than 2,000 consumer and industry comments have been publicly submitted including a slew of negative, disparaging comments about the accounts receivable management industry. For example, in searching the comments ACA International found consumer feedback claiming the proposed rule “permits consumer privacy violations” and “protects deceptive practices by collection attorneys.”
Debt collection professionals can attest that these statements are not only false and contrived but are contrary to the valuable work the industry engages in on behalf of clients.
Now is your chance to help ACA International set the record straight!
ACA’s grassroots advocacy campaign, with options for members to submit comments on the proposed rule, is ongoing with the CFPB’s extension of the comment deadline to Sept. 18. ACA will also be holding a webinar Aug. 27 where staff will walk through how to file individual comments on the proposed FDCPA rule; share its template for filing individual comments; provide information about where to find talking points; as well as instructions on how to navigate the Federal Register and filing system to make one last grassroots push for reaching out to Congress and the CFPB.
The proposed rule, at more than 500 pages, addresses several key issues about which ACA has long sought clarity, including safe-harbor procedures for the use of voicemail messages, text messages and email. ACA is pleased that the CFPB chose to address the use of modern technology and communication, which have long been a source of great frustration for debt collectors, and for the opportunity to continue to work with the bureau on the proposed rule.
Unfortunately, consumers and consumer groups focused—and frustrated with—modern technology and communication in their comments also state the proposed rule would foster supposed “harassment” and “abuse” by debt collectors.
“This rule, if it were to go into effect, would be astoundingly harmful to American consumers,” one comment states.
Consumers and consumer advocates further argue the proposed rule will allow for the sale of “zombie debts” and state the CFPB should ban selling and collection on time-barred debts.
ACA Board Member Richard Perr, an attorney with Fineman Krekstein & Harris in Philadelphia, told The Washington Post (a subscription may be required to read this article) recently that the proposed revisions to the FDCPA would correct a “draconian” system that unfairly punishes debt collectors for not knowing the statute of limitations on a debt.
“Zombie debts,” or time-barred debts, tie back to the statute of limitations, which is influenced by state laws and in some cases broken if a consumer makes a payment on a debt or acknowledges the debt in communication with a collector.
These factors create confusion for consumers—and collectors—reports Renae Merle for The Washington Post, who talked with Perr.
“There are 50 state legislatures that have different state laws,” Perr said in the article. “Whether it’s your utility bill, water service or a cellphone bill from Verizon or AT&T to your local doctor, they can all be treated differently.”
In its current state, the CFPB’s proposed rule prohibits lawsuits and threats of lawsuits on time-barred debts and requiring communication with the consumer before credit reporting.
Overall the proposal to provide “clear rules of the road,” as described by CFPB Director Kathy Kraninger, are welcome by ACA with the goal for it to be beneficial for the industry and consumers alike.
Given the consumers’ and consumer groups’ comments seeking a blanket ban on communicating about or collecting time-barred debt as well as restrictions on modern communication in general, it’s important for ACA members and the industry to weigh in on a balanced solution.
It’s also critical for the industry to be engaged and to counter consumer and consumer advocate comments that the call frequency limit (no more than seven attempts by telephone per week) should apply per consumer, not for each debt they may have.
ACA appreciates the opportunity to continue to work with members, the industry and the bureau on an extended comment deadline for the proposed rule. ACA’s grassroots advocacy campaign is a simple opportunity to share your comments and clarify concerns of consumers and consumer groups in messaging directly to the bureau. Take action by clicking here.
The response to the bureau needs continued input from the industry to show the current framework debt collectors use for calls, emails and text messages and the impact and unintended consequences the proposal may have on those communication methods designed to help consumers resolve their accounts.
Here is how you can file comments:
- Federal eRulemaking Portal: http://www.regulations.gov . Follow the instructions for submitting comments.
- Email: [email protected]. Include Docket No. CFPB-2019-0022 or RIN 3170-AA41 in the subject line of the email.
- Mail: Comment Intake—Debt Collection, Bureau of Consumer Financial Protection, 1700 G Street NW, Washington, DC 20552.
- Hand Delivery/Courier: Comment Intake—Debt Collection, Bureau of Consumer Financial Protection, 1700 G Street NW, Washington, DC 20552.
Make sure to include Docket No. CFPB-2019-0022 or RIN 3170-AA41 on your comments.
Please stay tuned to the ACA Daily newsletter and watch your email for member alerts and news on the proposed rule and upcoming webinars. Access My ACA by logging in to update your email subscriptions to stay in the know on industry and member updates.