There has been another spike in the number of comments filed by consumers over the proposed debt collection rule, but now collectors who are using a template from ACA International are submitting their own comments as well.
During the course of the past few days, about 579 new comments have been filed — all using the exact same language with the exact same typos in them. These comments follow about 800 or so of the same comments that were filed earlier this month. The commenters appear to be using a template provided by a consumer advocacy group because they all have the exact same language.
However, a couple of comments from representatives in the credit and collection industry have also been published in the past few days, and they are exactly the same. They appear to be using a form template that was created by ACA International. The comment letter states:
I support the CFPB’s efforts to modernize the severely outdated Fair Debt Collection Practices Act (FDCPA). When enacted in 1977, Congress provided the Federal Trade Commission with enforcement authority but no rulemaking authority. Over the decades, due to the outdated nature of the law, the ability to use common forms of communication such as email, text messaging and voicemail has been opaque. Yet, consumers repeatedly indicate that they prefer the ease and convenience of modern communication modes, which can allow for more control and privacy.
Arbitrarily limiting communication harms consumers because they fare best when they know their full financial situation and all available options. As the CFPB moves to finalize its rule, it would be beneficial to receive clarity in several areas. Which include but are not limited to new requirements for credit reporting, frequency limits including one right party conversation per week, and aspects of the model validation notice to better account for various types of debts and the nature and size of those in the industry.
The accounts receivable management industry annually recovers billions in unpaid debt that is returned to and reinvested by businesses. Without an effective collection process, the economic viability of these businesses and the American economy is threatened. Recovering rightfully owed debt enables organizations to keep credit, goods and services available, and reduces tax hikes.
I urge the CFPB to move forward with the important aspects of the rule that embrace modern communication methods and provide much-needed safe harbors, while also considering the detailed feedback in the ACA International comment letter, which further outlines where the rule can be improved to limit any future unclear requirements.
Comments from Mark Laurent of Hilton Grand Vacations and Annie Davis of Financial Data Systems have used this language.
To date, about 1,800 comments have been received, the overwhelming majority coming from consumers who oppose all or parts of the proposed rule. The comment period is scheduled to remain open until August 19, however a number of groups — including a financial services trade group — have requested the comment period be extended
