If this is the first post you’re reading in our series of Regulation F blog posts, you’ve come to the right place to learn more about these changes and what it means for the debt collections industry.
The Fair Debt Collection Practices Act was first issued in 1977. Since then, it has been the go-to legal document regulating all debt collection activities across the nation. In 2011, an additional governing agency called the CFPB (Consumer Financial Protection Bureau) came on to the scene. These are just two of the regulators that mandate the industry and technology and over time have highlighted new challenges that needed to be addressed, thus the need for Regulation F and the amendments therein were recognized and put into place.
To review our previous posts detailing some of the changes on Regulation F, click here for part one, part two, and a deeper dive at the itemization date of a debt. This week, our focus shifts to the frequency of communications and what this means for collections agencies who are trying to reach out to consumers on behalf of clients to get their debts paid.
Regulation F: Communication Frequency
In the new changes to Regulation F, the frequency at which a collections agency can contact a consumer has changed. This change, presented in Section 1006.14B21A, addresses telephone call frequency and restricts agencies to contacting a consumer seven times within seven consecutive days.
What does this mean for agencies who want to ensure they’re complying with the change? Agencies will now need to consider how to accurately timestamp their actions of “placing a call” and “having had a telephone conversation with the person in connection with the collection of a debt.” These two actions are essential because any action taken outside of these timestamps could potentially be seen as being out of compliance. Additionally, this change should encourage agencies to make updates to their IT systems to allow for the careful coding to designate calls on multiple or merged client accounts.
Why is This Change Important?
This rule describes the use of telephone call frequencies when a debt collector successfully connects with an individual within their attempts to discuss the debt. Think: The second action listed above, or “having had a telephone conversation with an individual in connection with the collection of a debt.” Basically, the success of speaking with an individual is crucial here. Once a collections agent successfully reaches the person they’re trying to contact, a new timestamp begins for ongoing conversations about a specific debt. Next, getting consent is equally crucial. The agent will need to ask the individual for consent to call again within seven days. If consent isn’t given, the timestamp starts over again.
Agencies who wish to streamline their communication efforts with consumers should do so with changes to call-in procedures and scripts. Ongoing training for agents will teach the procedure to immediately ask for permission to call or contact the individual again once the initial connection is made.
One of the differentiating factors of Capital Recovery Corporation from other debt collections agencies is that our employees maintain ongoing training complete with the continuing education (CEU) provided through the IACC and CCAA. If you are interested in learning more about how our agency can help you collect your past due debts owed, reach out to start a conversation today.