The release of this rule is the biggest development in the accounts receivable management industry since passage of the Fair Debt Collection Practices Act more than 40 years ago.
Tags/Topics: Daily News Press Release
For Immediate Release
ACA International Communications Department
Minneapolis, Minnesota – October 30, 2020 – Today, the Consumer Financial Protection Bureau (CFPB) released its long-awaited final rule on debt collections. The release of this rule is the biggest development in the accounts receivable management (ARM) industry since passage of the Fair Debt Collection Practices Act more than 40 years ago.
“Today’s release is a small step forward in modernizing communications with consumers. Consumers in the collections process deserve to be on a level playing field with others in the financial services marketplace with recognition of their preference to use email and text messaging over other outdated methods, such as faxes as outlined in the current law,” said ACA CEO Mark Neeb.
“In 2019, the debt collection industry returned $90 billion back to small businesses and other creditors and continues its work to help keep the economy afloat. Consumers benefit when they are able to engage in two-way communication with the ARM industry, so that they can understand their choices for resolving outstanding financial obligations,” Neeb said. “The updated final rule is a step forward in updating outdated collections practices that hurt small businesses and left consumers in the dark. Collections professionals are uniquely trained to provide flexible payments schedules and emergency hardship assistance, and consumers will now reap these benefits more efficiently—especially during COVID-19. The new rule will also allow individuals to safeguard their access credit and services in the future.”
ACA International (ACA), the association of credit and collection professionals, submitted comprehensive comments in September 2019 outlining why arbitrary limitations on communications ultimately harm consumers.
ACA is the largest membership organization in the accounts receivable management industry. Founded in 1939, ACA brings together third-party collection agencies, law firms, asset buying companies, creditors and vendor affiliates representing industry professionals. ACA produces a wide variety of products, services and publications, including educational and compliance-related information; and articulates the value of the accounts receivable management industry to businesses, policymakers and consumers. www.acainternational.org.