Consumer Groups Criticize New Federal Debt Collection Rules
By: Suzanne Potter, Public News Service – MO
JEFFERSON CITY, Mo. – The Trump administration has just released proposed new rules
for debt collection, but consumer groups say they would do very little
to stop the onslaught of collection calls, emails and text messages that
plague many Missouri households.
The new rules would limit the number of phone calls debt collectors could make to seven per week per debt.
However, Joanna Darcus, an attorney with the National Consumer Law
Center, maintains seven calls a week is too many, especially for people
who are behind on multiple debts.
“We had proposed that collectors would be limited to having one
conversation per week with consumers and up to three attempted calls per
collector rather than per debt or account,” she states. “So we need a
rule that would actually stop phone harassment, and this just is not
it.”
Right now, there are no limits on the number of calls debt collectors can make.
The proposed rules also would require collectors who speak with the
consumer to wait at least a week before calling again. The proposal
would not limit the number of text messages or emails a debt collector
could send but would require that emails have an unsubscribe function.
Public comment will be open for the next 90 days at Regulations.gov.
This proposal would allow consumers to opt out of those forms of
communication. But Darcus says consumers would be better off with an
opt-in system where collectors have to get a consumer’s permission
before sending texts and emails.
“Instead of protecting consumers, it creates carve-outs and exceptions
that benefit debt collectors and cedes consent and the power of
consumers to protect themselves from unwanted phone calls, text messages
and emails,” she states.
Statistics from the National Consumer Law Center show that the problem
disproportionately affects communities of color in the Show Me State.
An estimated 31% of consumers in predominantly white areas of Missouri
have a debt in collection, versus 65% in mostly black neighborhoods.
