The Consumer Financial Protection Bureau, in a notice published in the Federal Register, is seeking to collect more information about collection validation notices, especially how individuals locate and use the information included in them.
To collect the information it is looking for, the CFPB said it will conduct “cognitive interviews” with individuals to “assess the effectiveness and validate the performance of the Bureau’s model debt collection validation notices.”
The proposed model validation notice would include a standard set of information and disclosures, such as a break down of the amount owed, instructions about how the debt can be disputed, other rights available to the recipient, and a tear-off reply that individuals can use to indicate a payment or notify the collector of a dispute. A copy of the model validation notice can be accessed by clicking here.
In announcing the additional round of testing, the CFPB also announced it is seeking comments about whether the collection of this information is necessary and if it will have “practical utility.” Comments must be filed by July 29. Comments can be filed by clicking here.
With respect to the information included on the model validation notice, the CFPB is seeking to understand:
- Whether consumers can locate and use important information effectively, such as information about the debt, information about the consumers’ rights, and information about how consumers may respond if they so choose
- How consumers view and respond to paper and electronic versions of the model validation notice
The model validation notice was the subject of many comments from participants in the credit and collection industry when the CFPB released the proposed rule.
AccountsRecovery.net hosted a webinar last November that discussed the model validation notice in great detail. A recording of that event is available by clicking here
