Can debt collectors contact you by text, email or social media?

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A 633-page rule released by the Consumer Finance Protection Bureau clarified the ramifications of the four-decade-old law for the nation’s more than 8,000 modern collection companies.

In 1977 bell bottoms were popular, Jimmy Carter was president and Elvis was dead. It’s also the year the Fair Debt Collections Practices Act was passed – and it didn’t say whether debt collectors could contact debtors by email, text or social media, all forms. communication that the law could not provide.

But now a 633-page rule published by the Consumer Finance Protection Bureau gave some clarity on the ramifications of the four-decade-old law for the more than 8,000 modern collection companies in the country: they can, in fact, use electronic communications as a means of contacting debtors.

The rule states that debt collectors can use text messages, emails and even private messages on social media services to try to extract money from people. Collectors should, however, provide consumers with an easy way to opt out of messages.

The law still prohibits “harassing and abusive and unfair debt collection practices,” but debt collectors can now contact debtors electronically up to seven times in seven consecutive days.

Consumer advocates are unhappy that the rule does not require collectors to confirm the identity of the debtor – or the amount owed – before trying to collect it.

American Banker magazine reports the CFPB will post another rule next month, tackling so-called ‘zombie debt’, prohibiting ‘collectors from suing or threatening to sue debts that they know or should know are past the statute of limitations’.

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