Changes Coming to the FDCPA?
June 23, 2009
The National Consumer Law Center (NCLC) reports that the Federal Trade Commission (FTC) has proposed a dozen or so changes to the FDCPA, most of which would strengthen the FDCPA’s protection of consumers.
The proposed changes include:
1. Increasing from $ 1,000 to $ 2,000, the maximum statutory damage award – that is, the amount going to a winning consumer in addition to [or regardless of] actual damages.
2. Requiring disclosure that a timely written debt validation request by a consumer will suspend collection activities until the collector responds to the request.
3. Requiring a disclosure that the collector must cease contacting a consumer if the consumer requests it in writing.
4. Requiring collectors to obtain express verifiable consumer authorization before electronically dinging the consumer’s bank account for payments.
Other not so consumer-friendly proposals include:
5. Considering allowing cell phone calls if agreed to by the consumer; and,
6. Allowing email and IM contact, even though such personal contacts may not be allowed at work.
The NCLC reports that it is likely these proposals will be considered by Congress at some point, but doesn’t predict when.
