The Consumer Financial Protection Bureau has received a petition to amend the Fair Debt Collection Practices Act in order to require collectors to include a disclosure in communications to consumers regarding what to do if a debt was incurred as a result of a fraudulent transaction.
The petition, which appears to have been submitted by a consumer, requests that the CFPB require collectors to include the disclosure in an initial letter, correspondence, or debt validation letters. The disclosure, as proposed, reads:
If any transactions regarding this credit product were fraudulent, whether you owned or did not own the debt, you have protections under the Fair Debt Collection Practices Act and may file a report at https://www.identitytheft.gov/ and send us a correspondence of the FTC Affidavit/report so we can further investigate this debt.
Consumers may be unaware of their rights and the procedures to follow if they are the victims of fraud and the FDCPA already requires collectors make certain disclosures to consumers, the petition argues. “Including information about fraudulent transactions aligns with the Act’s purpose of protecting consumers from unfair or deceptive practices,” wrote the individual who submitted the petition.
Adding the disclosure to their communications would involve making only “minor adjustments” to the standard procedures for collectors, but would enhance their compliance with consumer protection regulations, the petition argues. At the same time, consumers would be better informed about their rights and what they can do if they believe their debt is the result of fraud.
Comments on the petition may be submitted — before November 1 — by clicking here.
