Collector – July 2019 - 22

DEC 2016

CFPB projects pre-rule
activities will continue
through February 2017.

JUN 2017

CFPB announces it will
consolidate "intertwined"
substantiation issues in a
separate first-party creditors'
rule while moving forward
on a rule for third-party
debt collectors.

MAY 2018

The CFPB projects
pre-rule activities
will last through
March 2019.

OCT 2018

Then-Acting Director
Mick Mulvaney indicates
the CFPB will
engage in rulemaking to
define the term "abusive"
in unfair, deceptive or
abusive acts or practices.

some exclusions to the call cap, including
calls responding to a request for information
and calls made after receiving prior consent.
A debt collector who stays within
the proposed limits would not violate
Section 1692d(5) of the FDCPA, which
prohibits calling any person repeatedly or
continuously with the intent to annoy, abuse
or harass such person.
ACA members naturally have a lot of
questions about this, and ACA is reviewing
this section of the rule and the bureau's
research informing the proposed call
caps requirements. There are still lots of
unanswered questions, and ACA wants to
hear your feedback on how this might incur
consumer harm if you can't connect with a
consumer within the given call limit.
"We don't believe that one-size-fits-all
in debt collection," Neeb said at the May 8
CFPB town hall meeting. "The number of
times needed to connect with the consumer
may vary depending on the market.
Arbitrarily limited phone contacts does not
really serve consumers in our mind."

ACA requested model disclosures to
address these issues, but unfortunately
the CFPB didn't provide them in the
proposed rule. However, the bureau does
mention it will separately test model
disclosures for time-barred debt and
potentially address this issue in a separate
proposed rule.
The proposed rule would prohibit a debt
collector from suing or threatening to sue
on a debt if the debt collector knows or
should know that the applicable statute of
limitations has expired.
When it comes to debt transfers, subject to
certain exceptions, the proposed rule would
prohibit a debt collector from transferring
a debt to another debt collector if the debt
collector knows or should know that: (1) the
debt has been paid or settled; (2) the debt
has been discharged in bankruptcy; or (3)
an identity theft report has been filed with
respect to the debt.
There are still several challenges in this
area, and ACA will continue to advocate for
clarity from the bureau.

DEBT TRANSFERS & TIMEBARRED DEBT

PROVIDING REQUIRED
DISCLOSURES

"There are a lot of class-actions related
to issues like how to properly calculate
the statute of limitations," said Issa
Moe, ACA's vice president of legal and
general counsel. "Members who collect
in this space know it's complicated
to determine when the statute of
limitations has run because it varies
by state and debt type, so that creates
challenges for collectors. There is also a
lot of litigation related to out-of-statute
disclosures: when to provide them and
what's the appropriate content."

The proposed rule includes a framework for
providing electronic disclosures, additional
clarity on the contents of a validation
notice, as well as information regarding the
use of Spanish and other foreign languages
in a validation notice.
The proposed rule would require a debt
collector to provide required disclosures
in a manner that is reasonably expected
to provide actual notice, and in a form the
consumer may keep and access later. A
debt collector who provides the required
disclosures electronically would need to

22

JAN 2018

CFPB requests
information about major
credit card issuers'
collection practices for
its 2019 Credit Card
Market Report.

comply with either the E-SIGN Act or a set
of alternative procedures.
The proposal also includes requirements
relating to the delivery and format of
required electronic disclosures. For more
information on this aspect of the proposal,
see the electronic disclosure options
flowchart on the CFPB's website: http://bit.
ly/2vW6qGO.
The CFPB would require a validation
notice to contain certain information about
the debt, including:
* The account number and an
itemization of the debt;
* Certain information about consumer
protections, including information
about the right to dispute a debt; and
* A consumer response form that
consumers could use to take certain
actions, including submitting a
dispute or requesting original
creditor information.
The proposed rule provides a safe harbor
for collectors who provide a validation
notice in the body of an email if that email
is the initial communication with the
consumer, so long as the email is provided
in a "responsive format" that is accessible on
commonly used types of screens (computer,
tablet, smartphone, etc.).
Calculation of the validation period
has created compliance challenges for
ACA members. The proposed rule would
clarify that the validation period starts
on the date the collector provides the
validation information and ends 30 days
after the consumer receives the validation
information or is assumed to have received
the information. The bureau does define
when a collector may assume the consumer
receives the validation information: any date

ACAINTERNATIONAL.ORG


https://files.consumerfinance.gov/f/documents/cfpb_debt-collection-electronic-disclosure-flowchart.pdf http://bit.ly/2vW6qGO http://bit.ly/2vW6qGO http://www.ACAINTERNATIONAL.ORG

Collector – July 2019

Table of Contents for the Digital Edition of Collector – July 2019

Upfront
Industry News
Best Practices
FYI
Collection Tips
What you need to know about the CFPB’s proposed new rule for the debt collection industry
“I don’t know about you, but I’ve literally never received a telegram and wouldn’t even know how to send one.”
Celebrating 80 Years of Helping Members Succeed
How Does ACA Help Members Succeed?
A History of Advocacy
8 Decades of ACA’s Annual Convention
Calendar
Honor Roll
Education Spotlight
Tell It Like It Is: Washington Hears From ACA Members
Collectors Challenge 2019: Getting Creative for a Good Cause
Balance it Out
Balance Billing Challenges Continue
It’s All About You: Helping Members Succeed
Sandbox Rules
What is a Product Sandbox?
in 11th Circuit Case Examining What Constitutes an ATDS
ACA SearchPoint
Ad Index
Membership
Last Word
Collector – July 2019 - Cover1
Collector – July 2019 - Cover2
Collector – July 2019 - 1
Collector – July 2019 - 2
Collector – July 2019 - 3
Collector – July 2019 - Upfront
Collector – July 2019 - 5
Collector – July 2019 - Industry News
Collector – July 2019 - 7
Collector – July 2019 - 8
Collector – July 2019 - 9
Collector – July 2019 - Best Practices
Collector – July 2019 - 11
Collector – July 2019 - FYI
Collector – July 2019 - 13
Collector – July 2019 - Collection Tips
Collector – July 2019 - 15
Collector – July 2019 - What you need to know about the CFPB’s proposed new rule for the debt collection industry
Collector – July 2019 - 17
Collector – July 2019 - “I don’t know about you, but I’ve literally never received a telegram and wouldn’t even know how to send one.”
Collector – July 2019 - 19
Collector – July 2019 - 20
Collector – July 2019 - 21
Collector – July 2019 - 22
Collector – July 2019 - 23
Collector – July 2019 - Celebrating 80 Years of Helping Members Succeed
Collector – July 2019 - 25
Collector – July 2019 - How Does ACA Help Members Succeed?
Collector – July 2019 - 27
Collector – July 2019 - 28
Collector – July 2019 - 29
Collector – July 2019 - A History of Advocacy
Collector – July 2019 - 31
Collector – July 2019 - 8 Decades of ACA’s Annual Convention
Collector – July 2019 - 33
Collector – July 2019 - 34
Collector – July 2019 - 35
Collector – July 2019 - Calendar
Collector – July 2019 - Honor Roll
Collector – July 2019 - Education Spotlight
Collector – July 2019 - 39
Collector – July 2019 - Tell It Like It Is: Washington Hears From ACA Members
Collector – July 2019 - 41
Collector – July 2019 - Collectors Challenge 2019: Getting Creative for a Good Cause
Collector – July 2019 - 43
Collector – July 2019 - Balance Billing Challenges Continue
Collector – July 2019 - 45
Collector – July 2019 - 46
Collector – July 2019 - 47
Collector – July 2019 - It’s All About You: Helping Members Succeed
Collector – July 2019 - 49
Collector – July 2019 - 50
Collector – July 2019 - 51
Collector – July 2019 - What is a Product Sandbox?
Collector – July 2019 - 53
Collector – July 2019 - in 11th Circuit Case Examining What Constitutes an ATDS
Collector – July 2019 - 55
Collector – July 2019 - ACA SearchPoint
Collector – July 2019 - Ad Index
Collector – July 2019 - Membership
Collector – July 2019 - 59
Collector – July 2019 - Last Word
Collector – July 2019 - Cover3
Collector – July 2019 - Cover4
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