Additions to the Debt Collection Rule FAQ

Questions. From simple to complex, we all seek answers every day. Communicating with patients about the balances they owe can be confusing and can leave them with many questions. The Consumer Financial Protection Bureau (CFPB) recently added a new section to the Debt Collection Rule Frequently Asked Questions (FAQs) compliance aid. It revolves around electronic communications, designed to help us all be Ridiculously Nice when it comes to your patients.

The new FAQs address several questions related to a few areas, including:

• Electronic communication
• Electronic communication: opt-out notice
• Unusual or inconvenient time and place provisions in Regulation F

These updates are an addition to the Debt Collection Rule FAQs that the CFPB released in 2021.

Electronic Communication Additions

There was one question listed under Electronic Communication – Does the Debt Collection Rule FAQ require debt collectors to communicate electronically with consumers? The short answer is no. Just because it is an option to utilize, it is not a required communication channel. But for those that do choose to communicate through electronic means, the CFPB offers several points to help properly communicate with patients.

Electronic Communication Opt-Out Notices

When it comes to opt-out notices, there are a few more things to consider when dealing with patients and electronic communications.

The four main areas the CFPB focused on in the FAQs include:

• If a person can limit debt collector communications
• The opt-out notice requirement for electronic communications
• Reasonable and simple methods for opting out of electronic communications
• Honoring a consumers opt-out request for electronic communications if it doesn’t conform to instructions

As you can see, there is a lot more to consider when it comes to ensuring patients are able to opt out of electronic communications from debt collectors. The answers given by the CFPB go into much more depth on each main point, offering further clarity.

Defining Unusual or Inconvenient Times or Places

The final updated section of the Debt Collection Rule FAQ deals with when and where collectors are allowed to contact patients. Some of the questions asked revolve around definitions of inconvenient or unusual time or place, automatically generated communications, prohibitions, exceptions and a few other topics.

• Does the debt collection rule limit where or when a debt collector can communicate or attempt to communicate with a consumer about a debt?
• What does the Debt Collection Rule define as an inconvenient or unusual time?
• What does the Debt Collection Rule define as an inconvenient or unusual place?
• Does an automatically generated electronic communication (such as a payment reminder) that is sent at a time the debt collector knows or should know is unusual or inconvenient to the consumer, violate the prohibition on communicating at an inconvenient time?
• What are the exceptions to the prohibition on communicating at an unusual or inconvenient time or place?
• Does an automatically generated electronic communication (such as a payment confirmation) sent at a time the debt collector knows or should know is inconvenient to the consumer, which is sent in response to a consumer action (such as a payment), meet the limited exception for responding to consumer-initiated contact?
• If a consumer tells a debt collector that Fridays are inconvenient, but later contacts a debt collector on a Friday, can the debt collector respond on the following Friday under the limited exception for responding to consumer-initiated contact at a time or place the consumer previously designated as inconvenient?

As you can see by the wording of the section titles, the questions and answers in this section can be quite intricate, which is why it is important to better understand the requirements.

Finding Your Way Through the FAQ

The CFPB continues to add clarification to the Debt Collection Rule to make the rules as clear as possible. It’s important to understand how the rules and regulations will affect your facility. This is why Americollect will continue to be Ridiculously Nice and keep you updated on new information. If you have questions be sure to contact us! You can also read the entire Debt Collection Rule FAQ by clicking here.