On November 30, 2021, new rules addressing debt collection communications took effect from the Consumer Financial Protection Bureau (CFPB), interpreting and clarifying the Fair Debt Collection Practices Act (FDCPA) under Regulation F (Reg. F).
A guide to the CFPB’s Regulation F
Find out how the CFPB’s Reg. F impacts your contact center, what you need to do about the rules, and how LiveVox can help you strategize and execute for success.
Easily set and manage contact attempt limits
The CFPB’s “7 in 7” rule imposes restrictions by limiting the frequency of calls that can be made to a consumer about a particular debt. With LiveVox’s Attempt Supervisor, you can configure voice attempt controls across all of your campaigns, eliminating the possibility of agent error and helping you optimize your compliance strategy.
Simplify omnichannel debt collections compliance
Before, it was important to capture consent from customers. Now, it’s more critical than ever. With LiveVox’s embedded Consent Management tool, powered by our Unified CRM solution, you can simplify how you manage consent and customer preferences across an omnichannel environment.
Take advantage of SMS and email messaging
The CFPB’s Reg. F creates the perfect opportunity to expand your communications into SMS and email. With LiveVox’s Two-Way Messaging Bundle, not only do you have the ability to exchange emails and text messages with your customers, but you’ll also be able to effectively manage consent capture and revocations across digital channels.
Use speech analytics to stay on top of compliance
Under Reg. F, your agents play a vital role in capturing and refreshing customer consent, adhering to opt-outs, and including mandatory statements (e.g. Mini-Miranda). Our SpeechIQ® with Quality Management solution can help you accurately and objectively monitor and analyze 100% of your calls for CFPB Reg. F compliance.
What is the Consumer Financial Protection Bureau (CFPB)?
The Consumer Financial Protection Bureau (CFPB) is a regulatory agency tasked with oversight of consumer financial products, cfpb compliance, and services in the United States:
- Created by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
- Organized into several departments: consumer complaints, community affairs, research, the Office of Fair Lending, and the Office of Financial Opportunity
- The CFPB’s priorities include helping consumers to avoid financial harm, educating the public on financial products and services, and delivering data-driven insights that guide decision making.
What laws are regulated by the CFPB?
The CFPB implements and enforces federal consumer laws that all financial services providers must account for:
- To date, the CFPB has issued 19 regulations impacting consumer financial protection laws, including Regulation F, also known as the Fair Debt Collections Practices Act
- Twice a year, the CFPB publishes an agenda of its planned rulemaking activities
- Under some circumstances, the CFPB may issue final rules without a prior comment period. The CFPB may request comment on these rules and may later alter them, if needed.
How does the CFPB affect SMS and email contacts?
For the first time ever, under Regulation F, the CFPB has issued rules clarifying the use of SMS and email:
- SMS and email do not count against the limit of seven communications to a consumer about a particular debt in a seven-day period (the “7 in 7 Rule”)
- Supplementing calls with digital channels is a key way to more effectively reach consumers, but be sure to include clear opt-outs in your messages
- Using email is more important than ever, since electronic messages fulfill the requirement to inform consumers about their debt before credit reporting
- You can also use email to send validation notices—a much more cost-effective and streamlined method than traditional mail
- Promote your SMS and email capabilities to push consumers toward digital channels
How does the CFPB affect collectors specifically?
On November 30, 2021, new CFPB rules took effect addressing debt collection communications, interpreting and clarifying the Fair Debt Collection Practices Act (FDCPA) under Regulation F (Reg. F):
- Reg. F is designed to address consumer concerns about debt collection communications
- The ruling establishes a wide range of requirements and limitations for interacting with consumers
- Collectors must be proactive and ensure they have the right technology and tools in place to control contact attempts, manage consent and revocation, monitor phone calls, and leverage digital channels
What happens if you violate CFPB rules?
When considering CFPB compliance a financial institution, company, individual, or other entity subject to CFPB authority violates regulations, the Bureau may take enforcement action:
- Possible negative effects of violating the CFPB include costly litigation, fines, loss of customers, reputation damage, and other penalties
- The CFPB is authorized to conduct investigations before instituting judicial or administrative adjudicatory proceedings under Federal consumer financial law (i.e. “fact gathering”)
- In many cases, the CFPB partners with other federal regulators or state agencies to investigate the wrongdoing and coordinate enforcement
- When warranted, the CFPB may take a public enforcement action, or refer the matter to the Office of Supervision Examinations to resolve the matter through the supervisory process
- Enforcement includes either the CFPB or a court ordering the defendant to take action to remedy the harm it caused consumers. This can include requiring the person or company to compensate its victims for this harm by providing consumer redress.
Learn why leading contact centers chose LiveVox for their Omnichannel, CRM, AI, and Workforce Engagement Management solutions.
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Easily improve customer service and shift customer engagement between voice and digital channels while unifying all interaction history, customer profile information, and controls into a tailored agent desktop that improves effectiveness and speed.
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Supplement rather than replace your existing systems of record and CRMs using our simplified API approach, so agents get up and running quickly.
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Drive performance and stay on top of security requirements with a TCO model that also avoids unnecessary technology, minimizes the need for costly professional services, and offloads security costs.
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