The CFPB’s debt collection rule goes a long way towards resolving a long standing FDCPA question: How often can I call a debtor? Rather than institute a bright line rule, the CFPB adopted a rebuttable presumption which effectively limits debt collectors (including loan servicers subject to the FDCPA) to placing seven calls in a seven-day period. To further complicate matters, the rule also effectively prohibits calls for seven days after you actually reach a debtor. While this rebuttable presumption framework somewhat reduces ambiguity, it also means that potential violations of the rule will be easier to prove in civil litigation and regulatory enforcement actions.
Whether you are a third-party debt collector whose entire business will be subject to the rule, a loan servicer who is only considered a debt collector for certain loans, or a first party creditor interested in establishing best practices based off of the CFPB’s guidance, join us to learn more about how the calling restriction will impact your business.
- The rule is only a rebuttable presumption, so debt collectors should still consider the frequency, pattern, content, etc. of calls
- Debt collectors must be able to document call frequency
- If a debt collector wishes to rely on an exception, the ability to count calls towards a particular debt, consumer consent to exceed the call limit, it must maintain supporting documentation.