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During this week’s RA peer call, members highlighted a new trend: consumers are instructing debt collectors to contact them only via email or text message, then filing lawsuits when the collectors send letters instead, citing “inconvenient mode of communication.”

For companies with integrated email and texting services, accommodating these requests is straightforward. However, for others, it presents challenges that need to be addressed.

Let’s revisit Regulation F to clarify this issue. According to Regulation F, debt collectors are prohibited from communicating or attempting to communicate with a consumer in connection with the collection of any debt at a time or place that the debt collector knows or should know is inconvenient to the consumer.

The CFPB provides an illustrative example:

If a consumer instructs a debt collector not to contact them at a particular place, such as their home, the debt collector should seek clarification on whether this includes all media associated with the home, like mail. Without such clarification, the debt collector should assume that all communications to the consumer’s home address and calls to their home landline are inconvenient. Unless the consumer indicates otherwise, § 1006.6(b)(1)(ii) prohibits the debt collector from contacting the consumer at their home.

But do the courts agree that debt collectors can’t send letters if they receive this request? So far, no. Here’s one example: Opting Out of Letters? Not So Fast Says Texas Court.

How should collection agencies proceed with these notices moving forward?

1. 1. Evaluate Your Risk: Are you prepared to defend not honoring these requests? If not, it may be best to close the account if you are unable to communicate in the requested mode. Alternatively, you could place the account on hold until you can communicate via email or text.

1. Update Procedures and Training: Regardless of the approach you take, ensure you have clearly outlined how to handle these requests in your procedures and training. This ensures your staff consistently manages these situations.

By taking these steps, you can navigate this emerging trend more effectively and ensure compliance with Regulation F.

Documents and Crowdsourced Materials:

• Member Questions: Validation Notices, Litigation Trends, the MVN, and CFPB News

Top Reads:

• 7th Cir. Upholds Rejection of Borrower’s FCRA and FDCPA Claims Arising from Collection and Reporting Post-Bankruptcy

• CFPB Moves to Dissolve Preliminary Injunction and Supplements Motion to Transfer in Credit Card Late Fee Rule Case; Court Immediately Requests Further Briefing

Upcoming Webinars/ Other Announcements: 

• Important Announcement: All AI Notetaking Bots will be removed from Research Assistant Peer Group Meetings. This is to maintain the confidentiality of our peer members.

• Have topics you want to discuss during the peer call? Please send them to: Sara_Consultant@roundtables.us  by Thursday to ensure it makes it on our agenda!