ATLANTA — Struggling to get out of debt could soon become more stressful.
Imagine getting a text or an email about the money you owe! That could happen if new rules governing collection practices go into effect.
The move would update debt collection guidelines put in place back in the 70s, that didn't account for new technology like cellphones or the internet, but it also could come with some protections for consumers.
Under the newly proposed rules, companies would have to offer a way for people to opt out of being contacted by text or email, but there would be no limits on how frequently a collector could otherwise send these types of messages.
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The Associated Press reports, the new proposals would limit third-party collectors to calling up to seven times a week about a specific debt, allowing them to leave voicemails if they choose, but once they make contact over the phone, they cannot call again for a week.
Right now, the Federal Reserve says about 25 million Americans have debts in collection.
Collectors are one of the top complaints reported to federal financial agencies, with more than 800,000 complaints filed with the Consumer Financial Protection Bureau last year.
The updated rules come with some proposed protections.
Collectors would be required to send a disclosure about a person's debt, including an itemized list of what's owed and how they can respond.
Consumers could also limit the ways a collector contacts them, like use of a certain phone number or contact during certain hours.
The proposed changes would bar collectors from suing, or even threatening to sue, if they know or should know that the statute of limitations has already expired.
They would also stop collectors from giving debt information to a consumer reporting agency, unless they have already communicated about that debt with the person involved.
The CFPB will take public comments under consideration for 90 days before finalizing the updated rules late this year, or in early 2020.
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