ACA Seeks to Update Fed Rules on Contacts, Messages and Oversight

Last week’s workshop on the collection industry held by the Federal Trade Commission was “extremely positive” and the “beginning of a dialogue” on issues important to the industry, Rozanne Andersen, general counsel of ACA International, the collector’s trade group, told insideARM.com.

The ACA is pushing three major initiatives coming out of the workshop, said Andersen ("ACA Proposes Changes After FTC Workshop," 10/15).

First, there needs to be a discussion on the technology that collectors can use to communicate with consumers, said Andersen.

One focus of the workshop was the massive changes in telecommunications since the FDCPA was instituted 30 years ago. Many in the collection industry said that the regulation needs to be updated to address such technology as cell phones, answering machines, email and text messaging.

Andersen said that collectors should be able to use all reasonable forms of technology to contact debtors while debtors “should have the right to opt out of being contacted through that technology. They should be able to tell us it’s not convenient and the collector won’t use (that technology) again.”

A second focus for ACA regards messages left on a debtor’s answering machine, said Andersen. She noted that Colorado state regulator Laura Udis suggested at the workshop that collectors be allowed to leave messages without providing a so-called mini-Miranda or a full disclosure of the purpose of the call. “That would be a tremendous help,” said Andersen. “That’s a nice balance of consumer protection and industry need.”

Finally, the ACA plans to press for a consistent nationwide regulatory approach to the industry that is now covered by “a patchwork of federal rules,” said Andersen.

The FTC has said it will analyze the discussions at the workshop and come up with recommendations for possibly changing the FDCPA and the industry.