Robert Besser
09 Dec 2021, 07:28 GMT+10
WASHINGTON D.C.: Following a ruling by the U.S. Consumer Financial Protection Bureau (CFPB), U.S. debt collectors can now contact millions of indebted Americans on social media and by text messaging.
While critics said the messages could be lost online or sent to the wrong recipients, as well as cause invasions of privacy and the rise of new hoaxes, advocates claim the change is a simple update to rules created in the 1970s.
The rule change, which was approved by the CFPB last year during the Trump administration, requires creditors to contact defaulters privately, meaning they can send direct messages but not post on public profiles.
Consumers can opt out of these messages, but creditors do not require permission to contact people. There are no rules regarding how many messages are allowed to be sent.
Lenders argued that this rule change was needed, since the Fair Debt Collection Practices Act, which regulates the industry, became law in 1977 and is outdated.
The new rule limits calls to seven per week for any particular debt, but people with multiple debts may still be called dozen of times. Debt collectors are also limited from contacting any consumer by phone within one week of speaking to them about a specific debt.
In a statement, Mark Neeb, CEO of the debt collector trade group ACA International, said the rule change is "a small step forward in modernizing communications with consumers," as reported by the BBC.
According to CBS News, the rule change could affect tens of millions of people in the United States.
Get a daily dose of Las Vegas Herald news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Las Vegas Herald.
More InformationZAGREB, Croatia: Authorities have said that a weekend bus crash near Varazdin in Croatia killed 12 passengers and injured 32.The ...
WASHINGTON D.C.: The U.S. will participate in a joint military exercise in mid-October with India, less than 62 miles from ...
SEOUL, South Korea: South Korea has launched a domestically manufactured lunar orbiter that took off from Florida's Cape Canaveral Space ...
MOSCOW, Russia: A leading Russian scientist in the field of hypersonic flight, Dr. Alexander Shiplyuk, has been arrested on suspicion ...
LOS ANGELES, California: During a meeting that was disrupted by protesters this week, the Los Angeles City Council voted to ...
WASHINGTON D.C.: The U.S. Justice Department announced this week that former Puerto Rico governor Wanda Vazquez has been arrested in ...
NEW YORK, New York - U.S. stocks continued to mend fences on Monday, with gains by all the major indices."I ...
LONDON, England: Despite a recent rebound, speculators in the international copper market, considered an indicator of the world's economic health, ...
SYDNEY, NSW, Australia - Disappointing economic data released Monday has triggered a slackening of key interest rates by the Bank ...
BEIJING, China - Following a meeting of the two countries foreign ministers, China and Nepal agreed to build the Trans-Himalayan ...
NEW YORK CITY, New York: After a study released on Wednesday projected a 15 to 20 percent reduction in the ...
MOSCOW, Russia: Financial information released by the Rosstat federal statistics service this week indicated that Russia's economy shrank 4 percent ...