How new rules for debt collectors will affect you
DEBT collectors must follow certain rules when trying to recover money from you, and some of those rules are about to change.
For anyone with debts, it's worth understanding that they will soon be able to contact you in new ways, including Facebook - here's what you need to know.
The rules in place to protect people from debt collectors are part of what's known as the Fair Debt Collection Practices Act, or FDCPA for short.
This law sets out what they are allowed to do, and things you can do too.
It's estimated that 31% of adults in the US with credit reports have debt in collection.
What's changing?
Certain debt collectors will be able to contact you in a number of new ways - via email, text message and social media.
That means you could even be chased for debt on Facebook or Instagram via direct message.
It's third-party debt collectors who will be able to do this, so if you have debts with a credit card company for example, and they pass it on to a debt collection agency, it's the agency that can contact you in this way.
However a debt collector gets in touch, you will still have the right to tell them not to contact you.
And each message they send must have an option to opt out of being contacted.
But you don't have to agree to the initial contact, so debt collectors can contact you unsolicited through any of these channels at first.
The rules also set a limit on how can be called about a debt.
You can't be contacted more than seven times in one week, per debt account, and you can't be called within seven days of speaking with a debt collector.
This new rule on how frequently you can be contacted applies only to phone calls though and not email, text or social media personal message.
Debt collectors are still not allowed to use unfair practices when trying to collect a debt.
When are the changes happening?
The new rules come into effect in fall 2021 - an exact date has not been set.
So you won't be getting messages in this way immediately.
Why are these changes happening?
The laws laid out in the FDCPA haven't changed since they were first introduced in 1977.
The Consumer Financial Protection Bureau (CFPB), the federal agency which enforces the rules, decided they needed updating t keep up with the way we now communicate.
CFPM director Kathleen Kraninger said: “With the vast changes in communications since the FDCPA was passed more than four decades ago, it is important to provide clear rules of the road,”
Americans are less likely these days to answer calls - phone is the way debt collectors have traditionally gotten in touch.
And contact via other channels is likely to be cheaper for the debt collection agencies, CBS reports.
Is there anything else?
Expert have warned that the changes make it easier for scammers to take advantage of people.
Social media and text messages are already used by criminals to try and steal people's money and people will now have to be on alert for them impersonating debt collectors on these channels.
April Kuehnhoff, staff attorney at the National Consumer Law Center told CBS: "Just because someone claims you owe money, it doesn't mean it's true.
"There are unfortunately going to be a lot of scammers out there who pretend to be debt collectors, sending messages and emails."
Some consumer experts are also concerned that people will be more harassed by debt collectors because they will have more ways to do it.
There are further changes to the rules expected in December too, related to what can be disclosed on consumer credit reports.
What can I do about debt?
There's help out there if you're struggling with debt.
There are non-profits which can help you with money management and debt counselling.
The Federal Trade Commission has a handy FAQ to help you understand more about debt collection.
The CFPB have sample letters which you can use to respond to debt collectors.
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