The Consumer Financial Protection Bureau (CFPB) yesterday unveiled proposed rules for debt collectors that would restrict how often they can call borrowers, while making clear that firms can send unlimited text messages and emails as long as consumers don’t opt out of such communications, the Los Angeles Times reported. The CFPB regulations — the result of a process started under former Director Richard Cordray — would mark some of the first major rule changes for the industry in four decades if they are adopted. Under the proposal, debt collectors would be restricted to seven attempts to call a debtor by telephone in a week, and one actual conversation between a collector and debtor per week; there is also a new process through which debt collectors can leave voicemails. Collectors would be explicitly permitted to contact debtors through email and text message. Collectors would also be prohibited from contacting debtors through social media or through a work email. Rules would almost exclusively cover third-party debt collectors and generally wouldn’t apply to in-house creditors, according to a senior bureau official. The proposed rules also clarify what debt collectors have to disclose to consumers in official notices.
