The Fair Debt Collection Practices Act (FDCPA) was passed by congress in 1978. According to section 802, sub-paragraph e of the act, “It is the purpose of this title to eliminate abusive debt collection practices by debt collectors, to insure that those debt collectors who refrain from using abusive debt collection practices are not competitively disadvantaged, and to promote consistent State action to protect consumers against debt collection abuses.”
Recently, ACA International (a leading trade organization) proposed 5 “tweaks” to modernize America’s debt collection system for the Consumer Financial Protection Bureau (CFPB):
- Mandate that creditors maintain accurate account information for seven years. In addition, debt purchasers and debt collectors should have access to this information to provide verification of debt when needed
- Create a model validation of debt notice that would protect collectors under the FDCPA when communicating in consumers in writing
- Update the FDCPA so that collectors would be able to contact consumers using current technologies not available in 1978 when the act was originally passed
- Provide clarification on type of messages should be left on consumers answering devices when leaving messages
- Require debt collectors to conduct an investigation of a consumer’s dispute regarding how much is owed on the debt and to whom the debt is owed. In addition, consumers should be required to provide information specific to the dispute so the debt collector knows its basis and is able to conduct an reasonable investigation.
At Ropay Asset Investors we follow these developments very closely for several reasons. For one, we need to ensure that our customer / debtors get treated with the dignity and respect they deserve. Second, we need to make sure our collectors of choice will never show up in some of the other posts where you read about collection abuse.
As always, DO GOOD MAKE MONEY!