New rules and compliance of CFPB collection agencies discussed by Nexacollect | New

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ROHNERT PARK, California, November 12, 2021 / PRNewswire-PRWeb / – The accounts receivable industry’s leading information portal, NexaCollect, has responded to several concerns collection agencies should follow regarding Regulation-F which comes into effect from November 30, 2021. These changes include new restrictions when contacting a debtor by telephone, obtaining consent for electronic communications such as emails and text messages, additional disclosures and a detailed breakdown of all payments, fees and interest, and finally preventing the use of temporary credit reports as a collection tool. The detail date refers to the transaction date, the last payment date, the charge date, the last settlement date or the judgment date.

Before a collection agency comes to the credit bureau, they must contact the consumer about the debt, by mail or by phone. If he receives a return mail, it is not counted as a valid contact.

Nexacollect strives to ensure that its medical collection agency partners comply with HIPAA, FDCPA, TCPA and Regulation F. These rules also apply to consumer collection agencies for dental collection agencies. . Commercial collections are almost spared by these new CFPB laws.

Most collection agencies are very worried and are scrambling to comply with these new rules and the potential legal action it can cause if they are violated. Although this rule does not apply to old accounts already in collection, it nevertheless applies to all debts assigned to collections beginning November 30, 2021. Therefore, collection agency staff should contact all of its existing customers and ask them to provide the original balance, interest, charges, payments or adjustments that the account has incurred since the date of service. They should also ask for the exact date of the delinquency. For customers whose data is loaded through the automated process, these integrations will also need to be changed.

According to these new rules, without adequate information, a collection agency will not be able to perform collection activities in a manner that complies with Regulation F. Debt collectors must also be trained so that their collection tactics and frequency of contact with debtors / patients do not violate these updated guidelines. So yes, there is a significant cost associated with collection agencies in complying with this new law.

In the broad sense, this new rule brings greater transparency to the entire collection process. It eliminates some of the unethical practices that are currently used by a few collection agencies, in particular the passive use of credit reports as a collection tool. This rule also reaffirms and clarifies specific prohibitions on harassment and abuse, false or misleading representations and unfair practices that would be used by some collection agencies today.

NexaCollect has helped several businesses, institutions and healthcare professionals effectively recover money from their overdue accounts through its partners.

For more information, contact Jessica at support@nexacollect.com or call 1-844-Nexa-123

Media contact

Jessica goyal, Nexa Collections, 1-844-639-2123, support@nexacollect.com

SOURCE Nexa Collections


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