ROHNERT PARK, Calif. (PRWEB)
November 12, 2021
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 on November 30, 2021. These changes include new restrictions on communicating with a debtor by telephone, obtaining consent for 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 date of the transaction, the date of the last payment, the charge date, the last settlement date or the date of judgment.
Before a collection agency comes to the credit bureau, they must contact the consumer about the debt, by mail or by phone. If they receive 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. . The commercial collections remain almost untouched by these new CFPB laws.
Most collection agencies are very worried and are scrambling to comply with these new rules and the potential lawsuits that this can cause for any breach. While this rule does not apply to older accounts already in collection, it does apply to all receivables assigned to collection on or after November 30, 2021. Therefore, collection agency staff should contact all their 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 [email protected] or call 1-844-Nexa-123
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