3 New CFPB Debt Collection Rules for Credit Collection Agencies
Do you have debt in collections? We understand that it is a difficult time for you. Attending calls from any business collection agency is a taxing and frightening experience.
The new CFPB’s Debt collection rules will solve all these worries.
The CFPBs new debt collection rules came to effect on November 30, 2021. It includes everything that you need to know from the debtor’s and the debt collection agency’s point to view. Needless to say, it has made the collection process simpler. Our team at Nelson, Cooper & Ortiz has compiled all the important rules for you.
Here’s what you need to know-
Debt Collection Validation Notice
During the Covid times, situations changed radically.The traditional way cannot be used anymore when the whole world is maintaining ‘social distancing’ protocols. So the agencies providing credit collection services tried new ways to keep in contact with the debtors. Mostly they communicated online. The new CFPBs rule states that when the agency sends you information electronically, they have to include these points in the notice-
- Name of the debt collector
- Name of the original creditor
- Account number (If related to the debt)
- Current amount of the debt (That can get verified through records), etc.
Keeping all this information in the notice is mandatory. It makes things simpler for the original creditor who hired the best collection agency, and you, the debtor.
Usually, reputable collection agencies, do not annoy or harass the debtors in any way. But the new rules of CFBC have made calling hours transparent. It also protects the debtors from getting harassed, abused, or annoyed in their private lives.
These are the new rules for contacting debtors-
- Not more than seven times in a week or,
- Every call must be after a seven-day interval.
Debtors can contact the agencies anytime. It works in the favor of agents because when the debtors are clear about their queries, the debt collection process becomes faster.
Limited Content Messages
Debt collection agencies can only send ‘limited content messages’. These messages include-
- The name of the business, without any indication that it is a debt collection agency.
- Phone numbers, so that the debtors can call back.
- A request to the debtors to respond as soon as possible.
All agencies have to follow the limited content messaging style to contact debtors. Messages that do not have all this information, can get used against agencies.
At Nelson, Cooper & Ortiz, LLC we get updated with every new rule that the authority sanctions. It makes us the best agency to offer collection agency services. An original creditor can contact us, without any worry. Our team makes sure that no legal trouble gets created while debt collecting. You can find our rates at https://prelitigation.com/request-a-quote. To know more contact us at (713) 360-6645 today!