It might be a difficult moment if you have a debt that is being collected. You may be suffering financial difficulties, which can be frightening. If a debt collector contacts you about your obligations, you may wonder if the debt collector is legitimate, if the debt is yours, or if the amount the collector is seeking to collect is true.
When debt collectors try to collect on a debt, the Fair Debt Collection Practices Act makes it illegal for them to harass or threaten you. In addition, the CFPB’s new Debt Collection Rule took effect on November 30, 2021. This rule defines how debt collectors can communicate with you, including what information they must offer regarding the debt at the commencement of collection, your debt collection rights, and how to exercise those rights.
The new debt collection rule has five critical points to remember.
WHAT IS A DEBT COLLECTION VALIDATION NOTICE?
A debt collector is normally compelled to offer specific information regarding the debt when they initially contact you, or shortly thereafter. It’s called a validation notice when the information is supplied via paper or electronically, and it usually includes things like:
- Name and mailing information of the debt collector
- Name of the creditor to whom the debt is owed
- Account number (if any) associated with the debt
- An itemization of the current amount of the debt that reflects interest, fees, payments, and credits since a particular date that you may be able to recognize or verify with records
- The current amount of the debt as of when the validation notice is provided
- Information about your debt collection rights including how to dispute the debt
This notification is intended to assist you in determining whether you owe the debt and whether the debt collector’s information is correct. The notice must include a “tear-off” form that you can use to contest the debt or take other actions with the debt collector.
HOW OFTEN CAN A DEBT COLLECTOR CALL ME?
Debt collectors are prohibited from phoning you frequently or continuously with the intent to harass, oppress, or abuse you under the Fair Debt Collection Practices Act (FDCPA).
Collectors are deemed to be breaking the law if they call you about a specific debt, according to the Debt Collection Rule:
- More than seven times within a seven-day period, or
- Within seven days after engaging in a phone conversation with you about a particular debt
These call frequency assumptions apply exclusively to calls made to you by the collector. Text messages, emails, and other forms of media are not covered. Other limitations apply to those mediums.
WHEN CAN A DEBT COLLECTOR REPORT MY DEBT TO A CREDIT REPORTING COMPANY?
Debt collectors must follow certain procedures before reporting a debt to a credit reporting agency. They must perform one of the following actions:
- Speak to you by telephone or in-person about the debt
- Mail a letter or send an electronic communication about the debt and wait for a reasonable amount of time, generally 14 days, in case it is returned as undeliverable
If the debt collector sends you a validation notice, it signifies they’ve met their obligation to contact you and can, in general, start reporting the debt to credit reporting agencies, as long as they follow other credit reporting requirements.
CAN A DEBT COLLECTOR CONTACT ME ON SOCIAL MEDIA ABOUT A DEBT?
If debt collectors approach you via social media, they must follow specific rules, including:
- Keeping the communications private – Their messages to you must be kept private from the general public, as well as your friends, contacts, and followers.
- If a debt collector sends you a private message asking to add you as a friend or contact, the debt collector must identify themselves as a debt collector.
- Providing an easy option to opt-out of receiving future communications from them on that social media platform – They must also provide you with a simple means to opt-out of receiving future communications from them on that social media platform in each message.
WHAT IS A “LIMITED-CONTENT MESSAGE?”
A “limited-content message” is a voicemail left for you by a debt collector that must contain particular information. Messages with limited content must include:
- A business name that does not indicate the caller is a debt collector
- Telephone number(s) you can use to return the call
- A request that you reply and the name(s) of who you can contact to reply
They can also add some optional information, such as proposed dates and times for you to respond. Limited-content messages are not voicemails that do not follow these standards.
If you think a debt collector has violated your rights, you should speak to a professional.