The Consumer Financial Protection Bureau is making plans to change the rules for debt collectors and it’s not news you want to hear if you are in debt. Let’s start with some of the good changes before we dig into the bad stuff.

Limited phone calls 

A debt collector can call you seven times each week per unpaid debt. Although, if you actually pick up the phone and speak to them, they can’t call you for another week. Right now, if they want, they can call you every day. So this is a positive change.

Clear documentation 

The rule would require that collectors provide an itemized bill along with a plain-language guide to explain your rights and how you can dispute the bill.

Additional legal protection

The rule change would prohibit debt collectors from reporting your debt to a credit reporting agency before informing you of your delinquent debt.

The CFPB also plans to prevent debt collectors from suing you to collect time-barred debt: an unpaid bill that has gone over the number of years it can be collected (anywhere between three and 10 years, typically). However, although the right to sue will go away, collectors will still be able to pursue these “zombie” debts.

The Bad Stuff

The new rule would make it clear that debt collectors can contact you via email and text message.

The original Fair Debt Collections Practices Act was developed in 1977, before email and text messages and cell phones and the internet. It does not restrict debt collectors from using text messaging or email to pester you about your delinquent bills because there is no language about those methods of communication.

The FDCPA explicitly addressed the use of postcards, collect calls, and telegrams and they believe it’s in the interest of convenience to allow people to be contacted by text and email rather than rely on phone calls from debt collectors.

But it’s up to you to opt out of methods of communication you don’t want to receive. The new rule plans to set limits to prevent harassment and to make it easy for you to set your communication preferences, but don’t expect to get a form in the mail to choose how you want to stay in touch with debt collectors.

The debt collectors are likely to start texting and emailing and wait for you to use the “unsubscribe” option which should be present on all email and text message correspondence.

How to fight the proposal

The debt collection proposal is open for public comment, and once finalized, it’ll take a year for the rules to become enforced.

Meanwhile…

For now, the existing rules for debt collectors stand:

• They can’t call you before 8 a.m. or after 9 p.m.
• They can’t call you at work upon your request.
• They can’t harass you, threaten you, or tell other people about your debt.
• They can’t contact you if you ask them in writing to stop.