The CFPB updated a rule proposal designed to clarify certain restrictions and address predatory debt collection practices.
The supplemental proposal amends Regulation F which implements the "Fair Debt Collection Practices Act." The amendments would impose disclosure requirements on debt collectors attempting to collect "time-barred debt" (i.e., debts for which the relevant state of limitations has expired), and would prohibit debt collectors from using non-collection means (e.g., phone calls) unless they disclose during initial contact with consumers, as well as on any required validation notice, that the debt is time-barred. The supplemental proposed amendment also proposes model language and forms that debt collectors may use to comply with the proposed disclosure requirements.
- limit collection call attempts to seven over a seven-day period;
- require a debt collector to wait one week after speaking with a consumer before calling again;
- force debt collectors to send disclosures to consumers with debt information, such as itemizations of debt, and guidance on how consumers may respond to collection communications;
- allow emails, text messages and other new communication technologies to be used in collection communications; and
- prohibit a debt collector from suing or threatening to sue a consumer over time-barred debt.
Comments on the supplemental proposal must be submitted within 60 days after publication in the Federal Register.
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