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debtzapper

The CFPB Ain't What It Used To Be

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16 hours ago, debtzapper said:

https://www.consumerfinance.gov/about-us/newsroom/bureau-proposes-regulations-implement-fair-debt-collection-practices-act/

The proposal is currently in the public comment phase, which is the legally required time to allow thousands of people to voice displeasure with the proposal before they promptly ignore all of those comments and enact the new rules.

The big banks who own their in house debt collection arms have lots of cash to lobby for new rules.

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1 hour ago, fisthardcheese said:

https://www.consumerfinance.gov/about-us/newsroom/bureau-proposes-regulations-implement-fair-debt-collection-practices-act/

The proposal is currently in the public comment phase, which is the legally required time to allow thousands of people to voice displeasure with the proposal before they promptly ignore all of those comments and enact the new rules.

The big banks who own their in house debt collection arms have lots of cash to lobby for new rules.

What are some specific problems with the proposed rules?

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1 hour ago, BV80 said:

What are some specific problems with the proposed rules?

According to NCLC it allows for contact by email and text without express permission, which is my biggest complaint.  Texting should not be allowed unless one specifically agrees to receiving messages by text.  Simply giving a phone number should not meet that requirement.

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35 minutes ago, fisthardcheese said:

According to NCLC it allows for contact by email and text without express permission, which is my biggest complaint.  Texting should not be allowed unless one specifically agrees to receiving messages by text.  Simply giving a phone number should not meet that requirement.

Texting is common now.  It’s just the same as providing your cell number allows calls to that number.  

I think the CFPB is simply trying to modernize rules to keep up with technology.  The proposed rules also state that consumers must be provided information that allows them to opt out of receiving texts and emails.  That’s the same as being able to revoke permission to receive phone calls to your cell phone. 

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Debt collectors could soon get an all-clear to text, email and private-message consumers who have fallen behind in debt repayments -- on an unlimited basis. Consumer groups decried the proposed rule, saying it will enable harassment of consumers through electronic communications as well as phone calls.

While the proposed law would limit debt collectors to seven calls per week per debt, one consumer advocacy group said debtors could still feel ambushed, especially when combined with texting and emailing.

"We are horrified that the CFPB's proposed rule will actually authorize harassment of consumers through phone calls, emails and texts," said Margot Saunders, an attorney at the National Consumer Law Center, in an emailed statement. 

Even limiting debt collectors to seven calls per week could prove to be overwhelming for some consumers, the National Consumer Law Center said. For instance, a student with eight loans could receive 56 calls each week, the group noted. 

 

 

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22 minutes ago, debtzapper said:

While the proposed law would limit debt collectors to seven calls per week per debt, one consumer advocacy group said debtors could still feel ambushed, especially when combined with texting and emailing.

The proposed rules also state that debt collectors must provide information for consumers to be able to opt out of receiving text messages and emails.  

22 minutes ago, debtzapper said:

Even limiting debt collectors to seven calls per week could prove to be overwhelming for some consumers, the National Consumer Law Center said. For instance, a student with eight loans could receive 56 calls each week, the group noted. 

That’s actually better than it is now.  Right now, debt collectors are allowed to call several times a day, and it’s not considered harassment.   So, today, a student with 8 loans could get 2 or 3 calls per day for each loan.  That’s 16 to 24 calls a day.  

The proposed rules also include that once a debt collector speaks to a consumer, he must wait a week before calling again.  

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22 minutes ago, BV80 said:

The proposed rules also state that debt collectors must provide information for consumers to be able to opt out of receiving text messages and emails.  

That’s actually better than it is now.  Right now, debt collectors are allowed to call several times a day, and it’s not considered harassment.   So, today, a student with 8 loans could get 2 or 3 calls per day for each loan.  That’s 16 to 24 calls a day.  

The proposed rules also include that once a debt collector speaks to a consumer, he must wait a week before calling again.  

I, personally, want to see an affirmative opt IN for texting.  I know it's standard now, but I use my phone for many functions now, since it is a mini computer, and being constantly interrupted by text when working on something is worse than harassment by calls IMO.

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5 minutes ago, fisthardcheese said:

I, personally, want to see an affirmative opt IN for texting.  I know it's standard now, but I use my phone for many functions now, since it is a mini computer, and being constantly interrupted by text when working on something is worse than harassment by calls IMO.

The “opt in” is usually in the contract or agreement.   In credit card agreements, we are opting in to receive phone calls on the number we’ve provided when we use the credit card.  Needless to say, an agreement would have to include that we are agreeing to receive text messages.  But that language would be the “opt in”.

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3 minutes ago, BV80 said:

The “opt in” is usually in the contract or agreement.   In credit card agreements, we are opting in to receive phone calls on the number we’ve provided when we use the credit card.  Needless to say, an agreement would have to include that we are agreeing to receive text messages.  But that language would be the “opt in”.

Yes, but an affirmative opt in (rather than passive opt in) would be, for instance, a check box next to the phone number allowing text messages to that number.  Simply providing a phone number for phone calls and then placing something in the card agreement stating you also agree to text messages by providing a phone number is a pretty weak "opt in".  Stacking multiple things into the fine print on what it means by simply typing your phone number on an application is not really me saying "yes, this specific act is fine". 

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20 minutes ago, fisthardcheese said:

Yes, but an affirmative opt in (rather than passive opt in) would be, for instance, a check box next to the phone number allowing text messages to that number.  Simply providing a phone number for phone calls and then placing something in the card agreement stating you also agree to text messages by providing a phone number is a pretty weak "opt in".  Stacking multiple things into the fine print on what it means by simply typing your phone number on an application is not really me saying "yes, this specific act is fine". 

I could see an “opt in” box in a contract such as a mortgage or car loan that you have to physically sign.  However, I don’t see it happening in a credit card agreement.

Texting has become as common place as phone calls.  My dentist and doctor send appointment reminders via text.  Before cell phones, people received both personal and business calls on their landlines.  

Before texting became common place, people had personal and business voice mails on their cells.  In credit card agreements, there was no “opt in” box to receive calls on a cell phone.  This is no different.  It is no longer a surprise to receive a text message.  In fact, it seems a lot of people do more texting than talking.

Whether we like it or not, times have changed.  

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9 hours ago, BV80 said:

I could see an “opt in” box in a contract such as a mortgage or car loan that you have to physically sign.  However, I don’t see it happening in a credit card agreement.

They don't put it in the card agreement.  I know of at least one creditor:  Credit One that puts it on the online payment portal page.  If you want to make your payment online you are required to opt in EVERY payment EVERY time for text messages.  If you don't want text messages then you have to mail your payment.

ALL of the creditors have you opting in for emails when you enroll in paperless billing.  99,5% of consumers do not read the T&C when they opt for paperless billing and do not notice it includes emails including debt collection.  

The change has already happened.  The CFPB is simply making a move to keep up with it.

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