According to the FTC, the updates would reflect changes within the industry and within the use of technology.
One proposal calls for debt collectors to expand the “validation notices” sent to consumers to include information on the original creditor, as well as breaking down the debt’s principal, fees and total interest. The notices would also contain information about consumers’ rights under the act.
Another suggestion seeks to prevent debt collectors for contacting consumers via cell phones or text messaging without first obtaining their consent to use these methods. Additionally, they would need permission to use new payment technologies to access people’s account.
The FDCPA was introduced in 1977 to help protect consumers from “abusive, unfair and deceptive practices by third-party debt collectors,” according to the FTC.
Debts covered under the law include auto loans, medical bills and credit card debt. The current rules already state that collectors cannot use threatening language or repeated calling throughout the day to collect a debt, among other protections.
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