Muriel Bowser, the Mayor of Washington, D.C., has signed into law a bill that overhauls how debts can be collected in the nation’s capital for 225 days starting later this month, while the authors of the legislation work on permanent changes. This information was first reported by ACA International.
A copy of the law is available by clicking here.
Under the new law, collectors would be limited to making three phone calls in a seven-day period, while also addressing communications made via email and text messaging. The three phone call limit includes all phone numbers and accounts the creditor or collector has for the consumer, but does not include calls made to a collector by a consumer or calls made by a collector in response to a consumer’s request for a returned call.
Collectors must also possess “complete and authenticated documentation” including:
- Documentation of the name of the original creditor as well as the name of the current creditor or owner of the consumer debt;
- The debtor’s last account number with the original creditor;
- A copy of the signed contract, signed application, or other documents that provide evidence of the consumer’s liability and the terms thereof:
- The date that the consumer debt was incurred; provided, that in the case of a revolving credit account the date that the consumer debt was incurred shall be the last extension of credit made for the purchase of goods or services, for the lease of goods, or as a loan of money;
- The date and amount of the last payment by the consumer, if applicable; and
- An itemized accounting of the amount claimed to be owed, including the amount of the principal; the amount of any interest, fees or charges; and whether the charges were imposed by the original creditor, a debt collector, or a subsequent owner of the debt.If the debt arises from a credit card, the itemized accounting shall be measured from the charge-off balance and shall include copies of the charge-off statement and the most recent monthly statement recording a purchase transaction, last payment, or balance transfer.
In their first written communication with a consumer, collectors must also disclose that consumers may request all of the information that is listed above. Collectors must detail each of the pieces of information that can be requested and include a phone number, mailing address, and email address.
The law is scheduled to go into effect on September 23.
