New requirements from the CFPB, published in October 2020 and December 2020, are designed to address concerns about debt collection communications. These rules apply to calling customers, but now for the first time ever, the CFPB has also issued rules around email and SMS.
The first part of the ruling, released on October 30th, 2020, addresses a wide range of requirements and is available to read in its entirety here. The second part, specifically covering certain disclosures to customers, and released on December 18th, 2020, can be found here. In response, we’ve put together a new free eBook that covers how the new regulations impact you, what you need to do about them, and how LiveVox can help you strategize and execute for success in spite of the changes.
In this post, we’ll show you all the ways in which LiveVox’s solutions are tailor-made for making CFPB compliance a top priority in your operations. Regardless of whether or not it makes sense to implement one, some, or all of these recommendations, it’s critical that you make sure you’re doing what’s needed to comply with the new rules.
How LiveVox Can Help with the New CFPB Debt Collection Rules
It starts with the right technology. At LiveVox, we offer Phone Dial Attempt Supervisor (PDAS), which drastically simplifies how you manage your contact attempts to meet compliance and customer preference requirements. With PDAS, you can configure voice attempt controls across all of your campaigns, regardless of whether your agents are in-house, working remotely, or you are outsourcing your operation. Especially with the new requirements around making seven calls in a seven-day period about a particular debt, along with the seven-day hiatus after talking to a customer, PDAS can be that much more effective.
PDAS will enable you to start setting your calling rules. You need to have the right technology in place and make sure it’s working long before the new regulations are enforceable. Don’t wait. Be proactive, secure the right product, and start working on your processes now. Get PDAS in place to start enforcing your current calling rules and to get used to the product, and you’ll be ready to comply with the new CFPB requirements when they go live. And see below for added improvements coming to PDAS in 2021.
With the new rules, managing consent will be more crucial than ever. It’s not even really a consideration—it’s a necessity. You need to empower your agents to capture consent and initiate omnichannel customer engagement. Consent revocation is often the most difficult compliance element to track and manage. LiveVox makes it easier with unified profiles that automatically update changes as they are made. In keeping with the new CFPB rules, our Consent Management tool lets you easily capture and track customer opt-ins and opt-outs across all channels, simplifying how you manage consent and preferences.
Customer profiles are embedded across channels, making it easier to engage with them as needed. And you can create hyper-targeted messaging campaigns, giving you a unified solution to manage all communications with customers. For example, when sending Validation Notices and/or disclosures before credit reporting, you could mail a letter and then communicate in non-voice channels by having the customer email or text in response, all while tracking and managing consent. With more ways to communicate with customers at your disposal—mail, phone, email, SMS—it’s critical you have the right consent and engagement rules of your own in place.
The new regulations continue to permit emails and text messages to customers, albeit now with certain limitations. The use of email is also permitted for sending Validation Notices and disclosures before credit reporting. This means you need to start figuring out how to best implement email and SMS in your operations, because these channels will be more valuable now than ever before. We strongly recommend—especially in light of these new rules—using a multichannel strategy to most effectively engage with your customers while still keeping compliance top of mind. At LiveVox, we offer omnichannel solutions to help you do exactly this.
The new CFPB provision requiring 3 years of call retention can feel like a daunting one. But with the right speech analytics technology in place, not only can you retain your call recordings, you can also mine them for data and insights. At LiveVox, we offer SpeechIQ®, our speech analytics tool that ensures 100% of interactions in your contact center are automatically monitored, analyzed, and scored by advanced AI. With SpeechIQ®, you can get promptly notified of regulatory risk, customer dissatisfaction, or anything else crucial to your business. Specifically, we recommend using SpeechIQ® to track if your agents are 1) including the Mini-Miranda during conversations and 2) not threatening to sue customers over time-barred debt.
Ask us about Multichannel PDAS (MCPDAS), coming in Q1 2021, because you need to be able to count your emails and text messages too, not just your calls anymore. It’s crucial that you make sure these are flagged as part of the overall picture, and that you set some type of limit, even though the CFPB isn’t. You might even want to consider folding the number of emails and text messages you send into the maximum seven contact attempts per week about a particular debt as required by the new rules. Replacing a call with an email or SMS would be the safest approach to compliance.
Reach out to us with any questions or concerns surrounding the new rules. If you want to discuss the regulations in-depth, our experts have the answers you’re looking for. If you want to talk through your communications strategy, our business consultants are available to review it with you. And if you want the right technology in place to get your operations in line with the new CFPB rules, contact us for a demo of PDAS or SpeechIQ®. We’re here to help.
Read our full CFPB eBook to find out:
- What the new rules are
- How they could impact your operations
- What you need to do right now
- What could happen if you don’t do anything
- How LiveVox can help