What do you need to know about Hunstein? How are others handling credit report disputes? Does your communication strategy anticipate any changes with the 7-in-7 provision? Read on for more info!

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Hunstein: An FAQ

We have questions.

I thought you might. I have some answers. Hit me.

What happened?

The 11th Circuit (Alabama, Florida, and Georgia) recently sided with a consumer attorney's argument that a collection agency that transfers files to a letter vendor is committing a 3rd-party violation.

But...it's not?

That's what you and I think. However, the three judges in this case disagree.

Should we panic?

Panic is generally not a great plan unless you're Jodie Foster and you and your daughter are in danger. But in this case, it's especially true: the deision happened. There isn't anything you as an individual can do. This is not defeatist. Things are in motion.

What things?

Various industry advocacy groups and organizations are putting a lot of intense time into formatting the legal response to this decision. There are at least two components to this:

(1) Amicus briefs

(2) An en banc hearing

I do not know what either of those things are.

I didn't either!

An amicus brief is something filed by someone who is not involved in a court case, but has an interest in the outcome of a court case. It means "friend's brief." Amicus briefs must be filed by attorneys within the affected circuit. In this case, attorneys licensed in the 11th circuit will be filing amicus briefs.

An en banc hearing is a hearing called after a decision, generally by the party that was not successful in the initial trial. An en banc hearing happens before all the judges within a circuit, not just the judges (in the Hunstein case, that's three) in the initial trial. The 11th circuit has 12 judges.

Can you tell us what we should be doing?

No, I cannot. Not because I don't want to -- I live for telling people what to do -- but in this case, it would be highly irresponsible of me. This is a conversation that should happen between you and your counsel.

How long will all this take/last/effect us?

As of today, Wednesday, 28 April in the year of our lord 20 and 21, it is tough to say. I don't want to give you the wrong information, or false hope. As we know more, and as various parts come together, we'll have a better idea.

Will you address Hunstein in your Model Validation Notice webinar tomorrow?

No. In the initial aftermath, we postponed the Model Validation Notice webinar that was scheduled for last Thursday to tomorrow, and I anticipated that we might address Hunstein as part of that. Time has passed, and we are no longer considering addressing Hunstein in this webinar. You can email me for more info about this decision if you'd like.

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Credit Reporting Disputes Handling and Procedures

Members of insideARM's Research Assistant program regularly share policies, procedures, and other documents with me, which I then sanitize of all identifying information, and share back. These documents are free to members.

These documents can be useful in: 

  • testing your current policy/procedure against others in the industry
  • testing your own business practices
  • exposing gaps in your current process
  • understanding how others are tackling this issue
  • developing your own policy/procedure from scratch.

This information is culled from insideARM members. It is not legal advice, and is not intended to be legal advice.

Don't want to spend $129? Sign up for insideARM's Research Assistant program. It's $50 a month, and you get unlimited free access to all policies, procedures, work instructions, and document packets -- plus monthly peer connections and a research team that will help you with some of your tougher questions. Sign up now!

 

Call Frequency, Communication Strategy, and the 7-in-7: It's an Ecosystem, Friends

Research Assistant Prime members have access to regular Regulation F workgroups (for general collections, for student loan collections, and for healthcare collections).

We've recently spent time thinking through the 7-in-7 provision in Reg F, and what it can mean for your communications strategy.

The "7-in-7" provision essentially says that a collection agency can not attempt to contact -- c o n t a c t -- a consumer by telephone more than 7 times in 7 days. If one of those 7 contacts within that 7-day period leads to a contact with a consumer -- even if it's a hang-up -- you cannot attempt to reach out again for 7-days.

But that's just phone calls.

The Bureau, in Reg F, says, "It nevertheless is likely that the cumulative effect of the debt collector’s telephone calls and emails is harassment."

Wait, what?

Yeah. So. This is where the ecosystem metaphor comes in. Think of your entire communication strategy with consumers. It could be any combination of the following:

- telephone calls

- emails

- text messages

- ringless voicemails

- letters

In the 7-in-7 provision, the CFPB allows for 7 contact attempts within a 7-day period. If you are within that period, you are not considered to be harassing a consumer. (Unless, of course, your collector is having a super bad day and they say something harassing to a consumer in that allowed contact.) 

But.

But?

But, the amount of contacts a consumer receives from an agency needs to be looked at in its entirety. You may be within the 7-in-7 safe zone, but if you're also emailing a lot, and texting, and leaving "ringless" voicemails, it's very likely a consumer can feel that they are being harassed by the agency.

It doesn't matter what an agency thinks is harassing or abusive. it matters what a consumer, and a consumer's attorney, think is harassing or abusive.

So the 7-in-7 is important to consider in context. It might be smart to use the 7-in-7 not just for phone calls, but contacts in general.


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