What You Need to Know About Regulation FNew Debt Collection Rule
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Communication Technologies
Part One of the new rule clarifies the proper use of text messaging, email and social media when attempting to collect a debt. It also places restrictions on telephone communications with regard to the number of times a debt collector may attempt to call an individual consumer about a debt.
Specifically:
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“Limited-content message” is a new term defined by Regulation F. In essence, it is a voicemail message that provides only general information and does not identify the caller as a debt collector. According to Regulation F, the limited-content message “does not convey information about a debt directly or indirectly to any person.” As a result, it is not considered to be a collection communication under the new law. |
Debt Validation Notice
Under the current rule (in accordance with the FDCPA), a validation notice is required to be sent within five days of initiating contact with the consumer about the debt. Regulation F specifies the information that must be included in the validation notice and it proposes a standard model for creditors and collectors to use.
The new rule requires three particular changes to the Debt Validation Notice. (See the graphic below.)
- Instead of simply stating that the consumer has up to 30 days to either dispute the debt or request more information, collectors now must specify a particular expiration date for the validation period.
- The notice must provide the CFPB’s website address (https://www.consumerfinance.gov/consumer-tools/debt-collection/), and inform the consumer that further information about consumer protections is available on that site.
- The notice must now include an itemization date. This date is defined as one of the following five reference dates a debt collector can use to determine the amount of the consumer’s debt:
- The date of the last statement that the creditor issued to the consumer;
- The date the debt was charged off;
- The date the last payment was applied to the consumer’s debt;
- The date of the service for which the debt was incurred; or
- The date of a final court judgment concerning the debt.
What It All Means to You
As outlined above, the required itemization date can be one of five possible dates. At CSC, we’ll work with you to determine which of these dates is best for you. Here is the information we will need from you once Regulation F becomes effective:
- The total amount owed on the debt per the chosen itemization date.
- Any adjustments (credits/insurance payments, interest, fees, etc.) applied toward the total amount since the chosen itemization date.
By helping us comply with the new rule, you’ll be doing your part to ensure that our debt recovery efforts will continue to exceed your expectations. As always, should you have any questions about the new regulation and/or its potential impact to your business, please feel free to reach out to us.
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Credit Service Company, Inc.
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2150 Lelaray St.
Colorado Springs, CO 80909 P.O. Box 1120
Colorado Springs, CO 80901 |
Any correspondence related to a dispute should be sent to:
Credit Service Company, Inc. PO Box 2247 Colorado Springs, CO 80901
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2022 Credit Service Company, Inc.
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This communication is from a debt collector and is an attempt to collect a debt. Any information obtained will be used for that purpose.
Credit Service Company, Inc.
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