Effective November 30, 2021, Collection Agencies can now text, email and direct message debtors via social media for unpaid debts.
The Consumer Financial Protection Bureau (CFPB) will proceed with the two final rules issued under the Fair Debt Collection Practices Act (FDCPA):
- The first rule, issued in October 2020, focuses on debt collection communications and clarifies the FDCPA’s prohibitions on harassment and abuse, false or misleading representations, and unfair practices by debt collectors when collecting consumer debt.
- The second rule, issued in December 2020, clarifies disclosures debt collectors must provide to consumers at the beginning of collection communications. The second rule also prohibits debt collectors from suing or threatening to sue consumers on time-barred debt. Additionally, the second rule requires debt collectors to take specific steps to disclose the existence of a debt to consumers before reporting information about the debt to a consumer reporting agency.
According to NPR, the new rules were devised during the Trump administration, when the bureau became more business-friendly than it had been in the past. Kraninger resigned in January at the request of President Biden, who nominated Rohit Chopra to be the agency's new director.
The new rules also set a limit for the first time on how often debt collectors can call you. Agencies will be restricted to seven calls per week per account in collection.