The clock is ticking! Are you prepared for the new debt collection rules that
become effective November 30, 2021? Have you updated your policies and
procedures? Do you know the restrictions on how often you can contact a
borrower? Do the new rules affect third-party debt collectors, too? Now is
the time to prepare and get everyone onboard.
- Explain the new rules regarding debt collection communications, such as voice
messages, emails, texts, and social media
- Observe the new call attempt restrictions – not more than seven times within seven
- Define the new term “limited-content message” and explain what information must
(and must not) be included in such messages
- Understand how and when collectors must contact the consumer before furnishing
debt information to a credit reporting agency
- Describe what qualifies as time-barred debt and how collectors must handle it
- Implement sufficient oversight of in-house collectors and third-party debt collectors
The CFPB has confirmed that the two final rules issued under the Fair Debt Collection
Practices Act (FDCPA) will become effective on November 30, 2021. These new rules
affect both financial institutions and their third-party debt collectors. The first rule focuses
on debt collection communications (i.e., phone, voicemail, email, texts, and social media).
It increases consumers’ control over how often and by what means a collector can
communicate with them.
The second rule clarifies the disclosures that must be provided to consumers at the
beginning of collection communications. It also addresses the specific steps that must be
taken to disclose the existence of a debt to the consumer before reporting it to a credit
reporting agency. In addition, it prohibits collectors from threatening to sue on time barred debt. This webinar will explain the compliance implications to your systems and
procedures so you can prepare before the November 30 deadline.
Elizabeth Fast, JD & CPA, Spencer Fane LLP
Elizabeth Fast is a partner with Spencer Fane LLP where she specializes in the representation of financial institutions. Elizabeth is the head of the firm’s training division. She received her law degree from the University of Kansas and her undergraduate degree from Pittsburg State University. In addition, she has a Master of Business Administration degree and she is a Certified Public Accountant. Before joining Spencer Fane, she was General Counsel, Senior Vice President, and Corporate Secretary of a $9 billion bank with more than 130 branches, where she managed all legal, regulatory, and compliance functions.