As of 2015, new rules under the Fair Debt Collection Practices Act (FDCPA) went into effect. These rules regulate third-party debt collector communication and disclosure requirements. The aim of these reforms is to prevent predatory practices that deceive consumers for financial gain.
Debt collectors will now be required to give a disclaimer to the consumer if they believe the statute of limitations have expired. This disclosure requirement and the statute of limitations rules are complex. It is important to seek guidance from an experienced attorney to analyze whether the disclosure is sufficient or whether the collection efforts are time-barred.
There is also a new time-sensitive disclosure restricting behavior under the FDCPA. The debt collector now has five days to list the original creditor, provide an itemized inventory of the debt due as of charge-off, the accrued interest, other fees accrued, and the total payments made since charge-off.
Previously, the law prohibited the use of a consumer’s email address to communicate with them. Now, a debt collector is permitted to communicate with a consumer through the consumer’s personal email account if proper consent is obtained in writing. With these new rules in place, dismissal of an otherwise valid debt could occur if the debt collector failed to obtain the proper written consent to communicate via email.
At some point, most businesses may need to attempt debt collection on monies owed. To better understand your rights when it comes to debt collection, contact an experienced New York collections attorney Hobson-Williams by calling (718) 210-4744.