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The debt collection process got a little more interesting with the November 2021 changes to the Fair Debt Collection Practices Act (coincidentally, the FDCPA originally passed in 1977, the same year the above song “Pay It Back” was released). Among other things, the new changes allow debt collectors to use digital outreach channels like email, texting, and yes, social media.
Does that mean a debt collector might be instant messaging you? Yes, it does.
These updates were a long time coming. While the amendment has certainly protected consumers from abusive debt collection practices for almost 50 years, it hasn’t kept up with how we communicate. Most members of Gen Z and even many millennials would rather text than answer the phone. Additionally, the new rules preserve a consumer’s right to privacy and respect without feeling threatened.
Taking this news into account, remember that Better Business Bureau® is a trusted resource for you to lean on when verifying the legitimacy of a debt. This article explores the recent revisions to the FDCPA and includes advice on how to handle suspicious practices regarding a debt. Many key insights were provided by Todd Christensen, the Education Manager at MoneyFit, a BBB Accredited debt repayment services organization in Boise, Idaho.
New adjustments on verifying a debt
- Consumers have expanded rights for verifying the amount and validity of the debt being collected. This includes providing certain disclosures, information that helps a consumer to identify the debt, as well as information about consumer rights and protections.
- If a debt is time-barred (no longer collectible, also called “zombie” or “phantom” debt), debt agencies may not pursue legal action or threaten legal action.
Most responsible consumers are aware of their debts. This means the verification process is key in dealing with a debt you don’t recognize. The best thing you can do in this scenario is to immediately ask the debt-collecting agency to confirm the debt:
Ask them to supply the following information in writing: Who’s it from? What is the amount? What was it for?
The more specific you are, the better – you may find out that you don’t even owe the debt. And, if it’s a brand-new collection, you may still have time to reach out to the original creditor to set up a monthly payment plan that keeps the debt in-house (and not in your credit report).
Another important takeaway: There is a statute of limitations on things like old cellphone bills, old utility bills and the like. After the statute expires, you still owe the money, but a debt collector can’t take you to court or threaten to do so. Unfortunately, these debts can be sold and sold again, creating a vicious cycle for this so-called “zombie” debt.
Here are some more questions to consider when verifying the legitimacy of a debt: Are you being threatened? Do they mention destroying your credit? Sending law enforcement to your doorstep? If so, that’s a bogus debt collection agency. (And you can tell them you’ll be happy to bring law enforcement to their doorstep.)
If you suspect fraudulent behavior, BBB’s Scam Tracker℠ Is a tool allowing consumers to track and/or report the scams they encounter. If your experience is indeed fraudulent, this tool could play a role in protecting future victims.
New adjustments on a debt collector calling you
- They can call once a day per debt (seven total times a week per debt).
- Voicemails must get to the point: They can only include the agency’s name, a response request, and the appropriate contact information.
- Consumers can set restrictions on a debt collector’s communications channels, e.g., a consumer can say “stop calling me” and this will be interpreted as a request to cease telephone communications.
These changes provide more clarity for prohibiting debt collectors from harassing consumers. Originally, this harassment was defined broadly as the “intent to annoy.” The updated language drills down on more specific parameters regarding voicemails and calling frequency. As previously defined, they also can’t call you at work or outside of the 8 a.m. - 9 p.m. timeframe.
As for the request to cease contact: It’s always best to make this request in writing and send it via certified mail or with a sign-upon-receipt requirement to create a written record. The only responses they are allowed to provide are 1) that they have received your notice, or 2) that they will stop reaching out directly and instead use the court to take further action.
If a debt collector continues to reach out after you’ve asked them not to, they are in violation of the FDCPA. You can report them to the state regulator, the department of banking, finance, or consumer affairs, or even the Federal Trade Commission (FTC). If you keep track of the violations, you can also reach out to an attorney and, if it’s a clear-cut case, the debt collector could end up paying the attorney fees.
If you continue to receive calls from a debt-collecting party, even if it’s not for you – ask for their address and tell them it’s so you can send them a letter asking them to stop contacting you. This should put an end to it.
New adjustments on a debt collector using electronic communication
- Email, text, and social media private messages can be used to communicate. The collector must disclose their identity as a debt collector when doing so.
- Texts, emails, or electronic communications must include a chance to opt out of receiving them.
- Unless you’ve given them previous consent to do so, debt collectors can’t knowingly use your work email to contact you.
While some view these changes as controversial, these calibrations were much needed for this day and age. When debt collecting agencies need to get a hold of somebody, they need to be using the channel where they are most likely to respond. These changes diversify their outreach options by recognizing our modern means of communication.
Consider this: If you have a debt and you’re using social media as your primary means to communicate, wouldn’t you like to be aware of these messages? (And to be clear, you don’t have to “friend” your debt collection agency.) It’s also worth noting that these new allowances specifically reference private messaging – not public social feeds, comments or work profiles.
While there may be some concern about phishing scams and clickbait messages with these new changes, the important lesson is to ensure a legitimate debt collector has identified themself as such. If they don’t, then that’s a red flag. And as previously stated, you have the right to ask a debt collector to confirm the debt for you or opt out of further contact. Although, it must be said: If you choose to opt out, pay attention to your mail. You don’t want to be victim of a default judgment if you don’t appear in court.
Note: Unlike the parameters set for phone calls, no limitation has been set for the frequency of contact over social media.
The most important takeaway
Yes, you should pay off any honest debt you’ve accrued, but with some dishonest operators looking to take advantage of unknowing parties, it’s important to stay informed. Always request information in writing and pay attention to your inboxes, private message accounts, and of course, your mailbox.
Honest debt collectors must play by the rules; for your part, you need to know the rules to know your rights. If you owe a debt, no matter the circumstances, you are protected by the Fair Debt Collection Practices Act. You have the right to verify the debt while preserving and protecting your privacy.
A final thought: There is such a thing as a trustworthy debt collections agency – some of them are BBB Accredited. Find a collection agency near you.