Several new debt collection rules have been announced by the Consumer Financial Protection Bureau (CFPB). These rules, through what is called Regulation F, offer greater control to consumers over the various method and times they will be able to be contacted by debt collectors.
Regulation F was implemented by the CFPB on October 30, 2020, and December 18, 2020. The regulation was created to interpret the Fair Debt Collection Practices Act (FDCPA). The FDCPA is meant to protect consumers from abusive collection tactics by third-party debt collectors. Regulation F officially went into effect on November 30, 2021. The FDCPA and the regulations included in Regulation F apply only to third-party debt collectors and not original creditors.
Regulation F further clarifies that only the following individuals can be contacted by the debt collector when communicating about collection of a debt:
- The consumer who owes the debt,
- The consumer’s attorney,
- The original creditor or creditor’s attorney, and
- The debt collector’s attorney,
- A consumer reporting agency, if permitted by law.
Regulation F also clarifies when a debt collector may contact a consumer, as well as what times are prohibited for communication. Debt collectors may not contact consumers at an unusual time or a time that they know is inconvenient to the consumer. Similarly, if the collector is aware that a location is unusual for them to contact the consumer, that is prohibited as well. Many collectors attempt to contact a consumer at their place of employment. However, this is prohibited if the collector knows or has reason to know that the consumer’s employer prohibits this type of communication.
Regulation F also prohibits how often a collector can contact a consumer. The FDCPA and Regulation F say that a debt collector may not contact a consumer more than seven times within seven consecutive days unless the consumer has otherwise provided the collector with permission.
A debt collector may also not use false, deceptive, or misleading methods to collect on a debt, including deliberately giving the consumer the impression that the collector is an attorney or is associated with the federal or state government or suggesting that the consumer has committed a crime in not paying the debt. Additionally, the debt collector is prohibited from threatening to take or taking any action that they do not intend to follow through on.
Technology was also a focus of Regulation F, including contacting consumers using electronic communications. The regulations allow debt collectors to email or text consumers, but the debt collector must be reasonable when doing this. Excessively emailing or texting a consumer is still considered a form of harassment under the FDCPA. If the consumer responds to this communication by asking that the collector no longer communication via this medium, the collector must abide by this formal request as he or she would using other forms of communication.
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If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.
