Business-to-consumer creditors, you’ll have to change up your process to collect money from customers, thanks to new debt collection rules.
The final rules amending Regulation F, 12 CFR part 1006, passed late last year. And they’ve been touted as the most significant changes in the 40 years since the Fair Debt Collections Practices Act was passed.
These new rules kick in Nov. 30, 2021. But that will creep up quickly.
4 key factors in new debt collection rules
Among the major provisions in the 354-page final new debt collection rule, you get:
- an explanation of what information you must provide to a consumer when you begin debt collection communications
- a model notice containing such information
- an end to the practice of bringing or threatening legal action against a consumer to collect a time-barred debt, and
- a requirement that you take specific actions before you provide information about a consumer’s debt to a consumer reporting agency.
If you’re a b-to-c creditor, you won’t want to wait to start prepping the disclosure notice and briefing collectors on new limits.
Need more information?
Whether you’re a b-to-c creditor or a b-to-b one, there’s no denying collection during COVID-19 presents some unique challenges.
Premier Learning Solutions is offering a workshop, Today’s Strategies for Better, More Effective Debt Collections.
- Ways to create a comprehensive collection policy that is easy to follow and guarantees results
- “E-tactics” that work: use and document email effectively to save time and effort
- Best practices for billing and invoicing to improve cash flow
- How to manage in a remote atmosphere, from the manager’s point of view and the collector’s point of view
Click here for registration and more information.