The Fair Debt Collection Practices Act (FDCPA) underwent significant amendments on November 30, 2021, with the enactment of Regulation F by the Consumer Financial Protection Bureau (CFPB) [1, 2].
Key Facts
- Amendment Date: The FDCPA was amended on November 30, 2021.
- Regulation F: The Consumer Financial Protection Bureau (CFPB) enacted Regulation F to the FDCPA on November 30, 2021.
- Purpose: The FDCPA was enacted in 1977 to eliminate abusive debt collection practices, protect consumers, and promote consistent state action against debt collection abuses.
- Scope: The FDCPA applies to “debt collectors” who collect debts on behalf of others, including attorneys collecting debts for creditors.
- Regulation F Requirements: Regulation F adds additional consumer rights and requirements for debt collectors, including provisions related to debt collection communications, disclosures, and the handling of time-barred debt.
- Communication Methods: Regulation F addresses concerns regarding communication methods by allowing consumers to stop collection calls and text messages. Debt collectors can make up to seven attempted calls to a consumer after speaking to them, and they can also contact the consumer’s family or friends to obtain contact information. Email and text message communication methods are also allowed.
- Validation Notice and Disclosures: Debt collectors are required to provide consumers with a Validation Notice within five days of the initial communication. The notice must include information about the debt, the creditor, the consumer’s right to dispute the debt, and other relevant details. Disclosures can be made in writing, electronically, or orally.
- Actions Prior to Credit Reporting: Before reporting a consumer debt to a credit reporting agency, debt collectors must speak with the consumer about the debt, send a letter, or send an electronic message. This requirement aims to prevent debt collectors from reporting debts without giving consumers an opportunity to address the issue.
Purpose of the FDCPA
The FDCPA was initially enacted in 1977 to address concerns regarding abusive debt collection practices [3]. Its primary objectives include:
- Eliminating abusive debt collection practices
- Protecting consumers from harassment and unfair treatment
- Promoting consistent state action against debt collection abuses
Scope of the FDCPA
The FDCPA applies to “debt collectors,” defined as individuals or entities that collect debts on behalf of others, including attorneys collecting debts for creditors [3].
Key Provisions of Regulation F
Regulation F introduces several new requirements and consumer rights to the FDCPA. These provisions aim to modernize the law and address evolving communication technologies [1, 2].
Communication Methods
- Debt collectors can make up to seven attempted calls to a consumer within seven days after speaking to them [1].
- Debt collectors can contact the consumer’s family or friends to obtain contact information [1].
- Email and text message communication methods are permitted [1].
Validation Notice and Disclosures
- Debt collectors must provide consumers with a Validation Notice within five days of the initial communication [1].
- The Validation Notice must include information about the debt, the creditor, the consumer’s right to dispute the debt, and other relevant details [1].
- Disclosures can be made in writing, electronically, or orally [1].
Actions Prior to Credit Reporting
- Before reporting a consumer debt to a credit reporting agency, debt collectors must speak with the consumer about the debt, send a letter, or send an electronic message [1].
- This requirement aims to prevent debt collectors from reporting debts without giving consumers an opportunity to address the issue [1].
Conclusion
The amendments to the FDCPA through Regulation F provide consumers with enhanced protections and clarify the responsibilities of debt collectors. These changes aim to ensure fair and ethical debt collection practices while allowing debt collectors to effectively collect debts.
References
[1] Stotler Hayes Group. (2021, December 3). FDCPA to be Amended Effective November 30, 2021, by New Regulation F. https://www.stotlerhayes.com/fdcpa-to-be-amended-effective-november-30-2021-by-new-regulation-f/
[2] CFPB Confirms Effective Date for Debt Collection Final Rules. (2021, July 30). Consumer Financial Protection Bureau. https://www.consumerfinance.gov/about-us/newsroom/cfpb-confirms-effective-date-for-debt-collection-final-rules/
[3] FDCPA to be Amended Effective November 30, 2021 by New Regulation F. (2021, October 17). JDSupra. https://www.jdsupra.com/legalnews/fdcpa-to-be-amended-effective-november-7740125/
FAQs
When was the FDCPA amended?
The FDCPA was amended on November 30, 2021, with the enactment of Regulation F by the Consumer Financial Protection Bureau (CFPB).
What is Regulation F?
Regulation F is a set of rules issued by the CFPB that amends the FDCP It introduces new requirements and consumer rights related to debt collection practices.
Who does the FDCPA apply to?
The FDCPA applies to “debt collectors,” defined as individuals or entities that collect debts on behalf of others, including attorneys collecting debts for creditors.
What are some key provisions of Regulation F?
Key provisions of Regulation F include restrictions on communication methods, requirements for validation notices and disclosures, and actions that must be taken before a debt collector can report information to a consumer reporting agency.
How do the amendments to the FDCPA affect debt collectors?
The amendments impose new requirements on debt collectors, such as limits on the number of calls they can make to a consumer and the need to provide consumers with clear and accurate information about the debt.
How do the amendments to the FDCPA benefit consumers?
The amendments provide consumers with enhanced protections against abusive debt collection practices, such as harassment and unfair treatment.
What should consumers do if they are being harassed by a debt collector?
Consumers who are being harassed by a debt collector should contact the CFPB or their state attorney general’s office to file a complaint.
Where can I find more information about the FDCPA and Regulation F?
More information about the FDCPA and Regulation F can be found on the CFPB’s website: https://www.consumerfinance.gov/