New debt collection rules are in effect. Starting November 30, 2022, the CFPB’s debt collection rule changes now apply. While some rules leave consumers vulnerable to increased debt collection contact, others provide clarity and greater protection. Let’s take a look at the most important changes.
First, debt collectors must contact consumers before reporting a debt to the credit reporting bureaus. This allows debts to be negotiated, disputed or paid before it negatively impacts credit.
Second, debt collectors must provide expanded dispute or “validation” notices. The new model notice gives consumers multiple options for disputing debts. For example, “this is not my debt,” or “the amount is wrong” are now listed right on the collection notice as options to check off.
Third, debt collectors are now specifically restricted from suing on debts that are past the statute of limitations.
And finally, debt collectors should not call more than seven times within seven consecutive days about a specific debt. More than this is now presumed to be harassment.
The new rules also contain specific provisions related to collecting debts via e-mail, text or social media. Check out the CFPB’s rule highlights at https://www.consumerfinance.gov/about-us/blog/understand-how-cfpb-debt-collection-rule-impacts-you/.
For more information on your debt collection rights, visit http://bardolawpc.com/services/#.