Debt Collection Abuse Archives | Arizona Credit Lawyers
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Consumer Financial Protection Bureau Proposes New Rules to Combat Improper Debt Collection

Recent reporting by The Hill reveals that the Consumer Financial Protection Bureau (CFPB) has proposed new changes to the ways that debt collectors may contact consumers. The proposed rule changes also limit litigation that Debt Collectors may initiate as well as what information they may refer to Credit Reporting Agencies.  Debt collectors have long harassed and abused consumers.  These days, with the COVID-19 virus, they have the ability to run rampant. The report goes on to detail how CFPB Director Kathy Kraninger hopes to clarify communications rules for the digital age. The proposed rules are currently in the 90 day comment period and will take effect next year. With the advent of social media, debt collection rules need to be updated to keep up with new forms of communication. The proposed rules include rules around email, cell phone, text message, and social medial contact by debt collectors. The rules also restrict the ability of debt collectors to contact consumers through a work email. Consumers will even be able to unsubscribe from some forms of communication from debt collectors. The report also notes that in addition to limits on the frequency of contact a debt collector can make, debt collectors will also be barred from threatening legal action for Zombie debt. That is debt that is past the statute of limitations for a lawsuit. Many debt collectors use various tactics to try to revive this debt and trick consumers into reopening the statute of limitations. These rule changes will make that much harder to do. The full and exact text of the rule changes is unclear as of The Hill’s...