Third-Party Debt Collectors Need to Follow New Regulations

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.

Written by Tanya Hobson Williams

Appointed to the bench by the Board of Trustees in 2008, and elected in 2009, Tanya Hobson-Williams was the first African-American Female Justice in the Incorporated Village of Hempstead. Tanya Hobson–Williams obtained her B.A. in Government and Politics from St. John’s University and her law degree from Benjamin N. Cardozo School of Law.

Tanya Hobson-Williams has an active elder law practice assisting senior citizens in obtaining Medicaid for Home Care and Nursing Home Care. She routinely lectures at senior citizen centers, assisted living facilities, law schools and counsels families on a variety of topics of concerns to families caring for the elderly.

Author: Tanya Hobson Williams

Appointed to the bench by the Board of Trustees in 2008, and elected in 2009, Tanya Hobson-Williams was the first African-American Female Justice in the Incorporated Village of Hempstead. Tanya Hobson–Williams obtained her B.A. in Government and Politics from St. John’s University and her law degree from Benjamin N. Cardozo School of Law. Tanya Hobson-Williams has an active elder law practice assisting senior citizens in obtaining Medicaid for Home Care and Nursing Home Care. She routinely lectures at senior citizen centers, assisted living facilities, law schools and counsels families on a variety of topics of concerns to families caring for the elderly.

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