By OptioWPAdmin
August 10, 2021

The Impact of the CFPB’s Debt Collection Regulation F on the Top Debt Collection Agencies.

Debt collection is a highly regulated business, the companies that thrive in this setting are leaders in compliance and certification. The Consumer Financial Protection Bureau (CFPB) released its final ruling for Debt Collection Regulation F (effective November 30th, 2021), which was designed to provide more information for consumers and enable them to communicate with debt collection agents on channels of their choosing.

To comply with these types of regulatory changes, it takes an experienced team of professionals. Because of the complexity of the rulings, top-tier debt collection companies will be positioned for success.

Companies that hire collection agencies with industry-leading compliance can be confident that their brand and reputation will be protected because of the attention given to regulations set by governing organizations like the CFPB’s Regulation F.

What is CFPB Regulation F?

Regulation F is a series of rules and guidelines expanding the FDCPA, which governs debt collection. Regulation F will clarify modern communication options for consumers, set rules for communications from debt collectors, and give consumers relief from the frequency of collection calls. You can read a  list of the rules with the most significant impact on debt collection companies below.

  1. Telephone limitation guidelines: A debt collector can only attempt contact seven times within seven days, if contact is made the collector must wait seven days before trying again.
  2. Consumer Communication Preference: Clarifying the right of the consumer to restrict which channel of communication of which they do or do not want to be contacted. This is a requirement for debt collection companies to honor the consumer’s preference for time, place, and methods of contact.
  3. Defined electronic collection communication: This part of the rule provides guidance on modern channels of communication such as email and text and their limitations.
  4. Validation notices: To remain in compliance, debt collectors will have to provide consumers with additional data to help them understand debt and how the balance was calculated. These additional data points include, but are not limited to, Itemization dates, itemization of interest and fees, and the name of the creditor to whom the debt was owed.

Who does Regulation F apply to?

Regulation F applies to third-party debt collectors. Impacted agencies will have to implement ways of tracking which communication channels a consumer has opted out of and ensure they are not in violation of the new 7-day call limits. In addition to tracking the channels of communication, agencies are tasked with providing more information to the consumer via validation notices. Debt collectors who violate these federal regulations could find themselves paying civil penalties.

Because of the potential for penalties and legal recourse, hiring a best-in-class debt collection agency with professionals dedicated to compliance is more important than ever. Top-tier debt collection companies aren’t caught off guard by up-and-coming regulations. Companies that hire top-tier collection agencies can depend on the revenue generated through collected debt with confidence.

The Optio Solutions approach.

Optio Solutions protects itself and its clients with best-in-class compliance and certification. Our top marks in compliance are achieved with the help of ACA-certified officers, an independent QA department, and an in-house legal team. Optio Solutions strictly follows all relevant laws and guidance provided by government bodies like the FDCPA, TCPA, and the CFPB. If your organization is interested in using the professionals at Optio Solutions, you can contact us by clicking the link below.


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