Why can debt collectors soon be able to send you a text message

The Consumer Financial Protection Bureau plans to enter the technological age by proposing to change the rules applicable to debt collectors. It's great that they're becoming more specific about what's allowed and banned, but you're certainly not going to like all the changes.

The good changes

Limited phone calls

A debt collector can call you seven times a week for an outstanding debt. if you pick up the phone and talk to them, they will not be able to call you for another week. At the present time, if they wish, they can call you every day. Everyday!

Clear documentation

The rule would require collectors to provide a detailed invoice with a plain language guide to explain your rights and how you can challenge the bill.

Additional legal protection – somehow

The rule change would prevent debt collectors from reporting your debt to a credit reporting agency before informing you of your outstanding debt.

The CFPB also plans to prevent debt collectors from suing for a prescribed debt: an unpaid invoice that has been in existence for several years (usually between three and ten years). However, although the right to sue disappears, collectors will still be able to pursue these "zombie" debts.

It's here that it gets very cool

The new rule would make it clear that debt collectors can contact you by e-mail or SMS.

The original law on fair debt collection practices was developed in 1977, a time that had elapsed before e-mails, text messages, mobile phones and the Internet. This does not prevent debt collectors from using text messaging or email to harass you about your unpaid bills because there is no language speaking of these methods of communication essentially imaginary.

"The FDCPA has explicitly addressed the use of postcards, collect calls and telegrams," said office manager Kathleen Kraninger at a public meeting on the current changes. According to Kraninger, it is in the interest of the convenience to allow people to be contacted by SMS and e-mail rather than relying on phone calls from debt collectors.

But it's up to you to choose the communication methods you do not want to receive. The new rule will set limits to prevent harassment and allow you to easily define your communication preferences, but do not expect to receive a form by mail to indicate how you want to keep in touch with the collection agents. They are likely to start sending SMS and e-mails and wait you to use the option of "unsubscription" which, according to Kraninger, will be present in all correspondence by e-mail and by SMS.

"True reform could encourage consumers to participate, not out," said Melissa Stegman, Senior Policy Advisor at the Center for Responsible Lending, in a press release. The National Center for Consumer Law is also concerned. "And the proposed rule allows e-mailing critical reviews to consumers who do not have regular Internet access," said Margot Saunders, an attorney in the organization, in a statement. . "Cell phones used by many low-income consumers do not provide quick access to email and the data that richer people have."

The CFPB is on this slippery slope of not really helping consumers since President Trump took control of everything we loved before. The CFPB has killed plans for the fiduciary rule. He canceled the ability to repay the loan requirement. This did not guarantee that there would be enough donuts for the whole class.

I am not even sad anymore; I am just disappointed.

How to fight the proposal

The debt collection proposal can be commented by the public and, once finalized, it will take a year for the rules to be applied.

But can we talk about the process of submitting a comment while we are here? It's a kind of bunk.