A proposed rule issued by an agency of the Treasury Department last week started making waves in the accounts receivable management industry when it became clear that collection operations would be subject to the proposal which is aimed at mandating that required disclosures given to consumers be done so in multiple languages, regardless of the communication channel being used. The proposed rule, which was issued by the Financial Stability Oversight Council, would most likely only apply to the mini-Miranda notice, but would require companies make the disclosure in five different languages.
The proposed rule is part of a broader push by the federal government to make important information more accessible to individuals who might not be fluent in other languages. The requirement is for all “important” disclosures to be made in the five most popular and commonly used languages in the state in which a particular consumer resides. The disclosure would need to be made when communicating in writing as well as when on the phone with consumers. It was not immediately clear if the disclosures would have to be given live by a representative or if a recording can be used.
Where the mini-Miranda gets lumped in is by the proposed rule’s definition of “important” disclosures. Any disclosure that is legally mandated is considered to be important under the proposed rule. While there are some exceptions that are spelled out in the proposal, the mini-Miranda is not one of them.
Collectors would have to check a database maintained by the federal government — which it obtained from the census — to identify the five most common languages in a given state. The disclosures would then need to be made together, one after the other, after informing the consumer that he or she will be receiving information in the different languages.
There are some concerns for companies that collect medical debt that disclosures under the Health Insurance Portability and Accountability Act (HIPAA) will also need to made broken out into multiple languages.
If You Made It This Far and Haven’t Figured it Out Yet …
