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 at https://bit.ly/3lxb0n8. The second part, specifically covering certain disclosers to customers, and released on December 18th, 2020, can be found at https://bit.ly/2LoPHqO. 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, to help you gain a better understanding of the new rules, and to jumpstart your thinking about how to make compliance a top priority, we’ll take a broad look at each requirement.
Breaking It Down
Time and place: Clarifies the times and places at which a debt collector may communicate with a customer.
Channel restrictions: A customer is allowed to restrict the channel a debt collector uses to communicate with them.
Frequency restrictions: Imposes limits on the number of calls that can be made about a particular debt.
Email and SMS: Clarifies the use of email and text messages in debt collection, with certain limitations and requirements, such as providing explicit opt-out messaging.
Managing consent: A debt collector must obtain consent before sending texts to customers.
Validating contacts: Prescribes requirements for obtaining a valid email address.
Limited-content message: Describes what a limited-content message needs to look like.
Call recordings: Debt collectors must retain call recordings for 3 years following the date of the last communication.
Time-barred debt: Prohibits debt collectors from making threats to sue, or from suing, customers on time-barred debt where the applicable statute of limitations has passed.
Debt parking: Customers must be informed of their debt—orally, in writing, or electronically—before that debt can be reported to a consumer reporting agency.
Validation notice: Detailed disclosures about the debt and rights in debt collection must be provided at the outset of collection communications with a customer.
Stay tuned for more posts coming in this in-depth series about the new CFPB rules.
If you have specific questions about how to operationalize the new requirements, please don’t hesitate to reach out to us.
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