CFPB Plans New Restrictions on Debt Collectors
The Fair Debt Collection Practices Act (FDCPA) currently limits when debt collectors can make calls to debtors and, in some cases, where those debt collectors can attempt to make contact with debtors. For example, if you ask a debt collector to avoid calling you at work, the FDCPA says that the debt collector must abide by your request. In addition, debt collectors are not allowed to call at any time of day. Debt collectors are prohibited from calling you at unusual or inconvenient times, which include anytime before 8:00 a.m. and anytime after 9:00 p.m. However, the Consumer Financial Protection Bureau (CFPB) believes that more restrictions need to be in place to protect debtors from harassment and abuse by debt collectors, according to a recent article in The New York Times.
Proposed Rules Would Restrict Number of Phone Calls from Debt Collectors
One of the most significant of the proposed rules concerns the number of times that a debt collector can call a debt. According to the article, “the new rules would bar collectors from making more than seven attempts a week to reach a debtor by phone.” In addition, once a debt collector does make contact with a debtor, the new rules would require the debt collector to wait at least one week before attempting to call the debtor again.
In addition to restricting the number of phone calls a debt collector can make, and the time period in which a debt collector can make those calls, the new rules also address time-barred debt. Currently, debt collectors continue to file claims against debtors—or threaten to file claims—for debt that has become time-barred.
Time-barred debt is debt for which the statute of limitations has run out. It does not mean that the debtor does not owe the debt, but when the statute of limitations runs out, the law says that the debtor cannot be sued for that debt any longer. The new rules would also include a “prohibition on collectors suing or threatening to sue over a debt that is beyond the statute of limitations for collections.”
Some Argue the New Rules are Insufficient to Protect Debtors
While the proposed rules include new protections for debtors, some commentators argue that they are not sufficient to protect debtors from abusive collection practices. For example, the new rules do not do any of the following:
Moreover, the new rules also give something to debt collectors. Under the proposed rules, debt collectors would be allowed to use email and text messaging to communicate with debtors. While those forms of communication would require the debt collector to give the debtor an “opt-out process,” many consumer advocates worry that this concession will open the door to abusive collection tactics.
Contact an Oak Park Consumer Protection Lawyer
Whether you have questions about how the proposed rules will impact you or need help dealing with harassment from a debt collector, an Oak Park consumer protection attorney can speak with you today. Contact the Emerson Law Firm for more information.
See Related Blog Posts:
Bankruptcy for Student Loans Could Change
Five Factors to Consider if You are Thinking About Bankruptcy
Proposed Rules Would Restrict Number of Phone Calls from Debt Collectors
One of the most significant of the proposed rules concerns the number of times that a debt collector can call a debt. According to the article, “the new rules would bar collectors from making more than seven attempts a week to reach a debtor by phone.” In addition, once a debt collector does make contact with a debtor, the new rules would require the debt collector to wait at least one week before attempting to call the debtor again.
In addition to restricting the number of phone calls a debt collector can make, and the time period in which a debt collector can make those calls, the new rules also address time-barred debt. Currently, debt collectors continue to file claims against debtors—or threaten to file claims—for debt that has become time-barred.
Time-barred debt is debt for which the statute of limitations has run out. It does not mean that the debtor does not owe the debt, but when the statute of limitations runs out, the law says that the debtor cannot be sued for that debt any longer. The new rules would also include a “prohibition on collectors suing or threatening to sue over a debt that is beyond the statute of limitations for collections.”
Some Argue the New Rules are Insufficient to Protect Debtors
While the proposed rules include new protections for debtors, some commentators argue that they are not sufficient to protect debtors from abusive collection practices. For example, the new rules do not do any of the following:
- Require debt collectors to document that they have reached the correct person;
- Require debt collectors to document that they are attempting to collect on the right amount of debt; or
- Restrict the amount of calls for people who owe multiple debts (under the new rules, those debtors still could receive more than seven calls per week since that “maximum” is tied to a single debt).
Moreover, the new rules also give something to debt collectors. Under the proposed rules, debt collectors would be allowed to use email and text messaging to communicate with debtors. While those forms of communication would require the debt collector to give the debtor an “opt-out process,” many consumer advocates worry that this concession will open the door to abusive collection tactics.
Contact an Oak Park Consumer Protection Lawyer
Whether you have questions about how the proposed rules will impact you or need help dealing with harassment from a debt collector, an Oak Park consumer protection attorney can speak with you today. Contact the Emerson Law Firm for more information.
See Related Blog Posts:
Bankruptcy for Student Loans Could Change
Five Factors to Consider if You are Thinking About Bankruptcy
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