Require debt collectors to send validation notices via certified mail. There must be some way to prove the debt validation notice was at least sent, if not received. I have had the experience of a debt collector not sending me a validation notice. When I made a complaint to the Illinois Department of Professional Regulations, the debt collector did not have to prove that they sent the validation notice. All the debt collector had to do was claim that they had records of sending the validation notice in their computer system. Since I did not receive the validation notice, I did not know what my rights were.
Every validation notice should include, not only the name, but the address and phone number of the current owner of the debt. It is not always the case that the consumer knows who the owner of the debt is, or how to contact them. This would not be a burden on collection agencies, because it would only require the collection agency to cut and paste the address and phone number of the debt owner onto the validation notice. The collection agency should already have this information in their company records, as the debt collector is forwarding consumer payments to said debt owner's address. This would allow the consumer to attempt to deal with the debt owner directly to try to resolve the dispute. For example, a case of mistaken identity can more easily be resolved by talking to a customer service representative of the debt owner, than by talking to a debt collector. The debt collector has no authority to correct the mistake, but a customer service representative of the debt owner does.
I would like to see the validation notice requirement become compliant and consistent with the spirit of the Americans with Disabilities Act. For example, a validation notice could have a section with a check box, asking if the debtor has a disability that is recognized by Social Security. If so, the debtor would check the box. Then there would be several lines after the check box in which the debtor could explain to the collection agency what reasonable accommodations they are requesting. The debtor could be asked to provide proof of disability, such as a Social Security award letter.
Every validation notice should include the collection agency's license status: license number, state of license, original license issue date, and current license expiration date.
What I had in mind when I made this comment was that some debtors are in debt because of a medical condition that has negatively impacted their ability to work. They may be on Social Security disability for this reason. Sometimes, that medical condition is scientifically known to be aggravated by stress, such as any heart condition, or an anxiety disorder. Currently, Section 806 of the FDCPA makes abuse or harassment of debtors illegal. However, what qualifies as abuse might be different for a debtor with a disabling medical condition that is sensitive to stress. My hope, and my suggestion, is that there could be some way for debtors to make collection agencies aware of the fact that the debtor has a documented medical disability, and that abusive or harassing phone calls have additional health consequences for the debtor.
I think the Massachusetts rule is a positive step in the right direction, and would be better than the current situation. Would the two calls be defined as two connected calls, or two call attempts, whether the call is connected or not? However, for those debtors who truly cannot pay at all, due to a serious adverse life event, such as the loss of a job due to a medical disability, their situation is not likely to change from week to week. For example, most disability insurance companies only require a patient's doctor to submit a re-certification of the patient's medical disability every 3, 6, or 12 months. In essence, the debt collector would be acting as a sort of medical re-certification investigator twice a week, which is unnecessary, burdensome on both debtor and collector, and potentially harassing.
I think the requirement for a debt collector to send a validation notice 5 days after the initial contact is backwards. I believe communication between the debtor and debt collector would be improved if the debtor has the validation notice before the initial telephone contact. The debt collector should be required to mail the debtor a validation notice 5 days before any phone contact, not 5 days after. Otherwise, the debtor is speaking with an unknown caller, who has surprised them with a demand for money. The debtor has not been provided with any time to prepare their thoughts, or to formulate important questions about the alleged debt. They may be caught "off guard", increasing the fear and anxiety of the debtor, which would necessarily lead to impaired verbal communication. The debtor has no written factual statement to refer to during the phone call, while the debt collector has all of the factual details in from of them on their computer screen, and can cite facts and figures. This situation creates an imbalance of power not conducive to good communication. This proposal to require debt collectors to send a validation notice 5 days before the first telephone contact would impose no financial burden on the debt collector, because validation notices are already required to be sent to the debtor. It is simply a change in the timing of an already existing requirement.
paperbag
1
Require debt collectors to send validation notices via certified mail. There must be some way to prove the debt validation notice was at least sent, if not received. I have had the experience of a debt collector not sending me a validation notice. When I made a complaint to the Illinois Department of Professional Regulations, the debt collector did not have to prove that they sent the validation notice. All the debt collector had to do was claim that they had records of sending the validation notice in their computer system. Since I did not receive the validation notice, I did not know what my rights were.
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paperbag
2Every validation notice should include, not only the name, but the address and phone number of the current owner of the debt. It is not always the case that the consumer knows who the owner of the debt is, or how to contact them. This would not be a burden on collection agencies, because it would only require the collection agency to cut and paste the address and phone number of the debt owner onto the validation notice. The collection agency should already have this information in their company records, as the debt collector is forwarding consumer payments to said debt owner's address. This would allow the consumer to attempt to deal with the debt owner directly to try to resolve the dispute. For example, a case of mistaken identity can more easily be resolved by talking to a customer service representative of the debt owner, than by talking to a debt collector. The debt collector has no authority to correct the mistake, but a customer service representative of the debt owner does.
View this comment in the discussion thread
paperbag
3
I would like to see the validation notice requirement become compliant and consistent with the spirit of the Americans with Disabilities Act. For example, a validation notice could have a section with a check box, asking if the debtor has a disability that is recognized by Social Security. If so, the debtor would check the box. Then there would be several lines after the check box in which the debtor could explain to the collection agency what reasonable accommodations they are requesting. The debtor could be asked to provide proof of disability, such as a Social Security award letter.
View this comment in the discussion thread
paperbag
4
Every validation notice should include the collection agency's license status: license number, state of license, original license issue date, and current license expiration date.
View this comment in the discussion thread
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5
What I had in mind when I made this comment was that some debtors are in debt because of a medical condition that has negatively impacted their ability to work. They may be on Social Security disability for this reason. Sometimes, that medical condition is scientifically known to be aggravated by stress, such as any heart condition, or an anxiety disorder. Currently, Section 806 of the FDCPA makes abuse or harassment of debtors illegal. However, what qualifies as abuse might be different for a debtor with a disabling medical condition that is sensitive to stress. My hope, and my suggestion, is that there could be some way for debtors to make collection agencies aware of the fact that the debtor has a documented medical disability, and that abusive or harassing phone calls have additional health consequences for the debtor.
View this comment in the discussion thread
paperbag
6
I think the Massachusetts rule is a positive step in the right direction, and would be better than the current situation. Would the two calls be defined as two connected calls, or two call attempts, whether the call is connected or not? However, for those debtors who truly cannot pay at all, due to a serious adverse life event, such as the loss of a job due to a medical disability, their situation is not likely to change from week to week. For example, most disability insurance companies only require a patient's doctor to submit a re-certification of the patient's medical disability every 3, 6, or 12 months. In essence, the debt collector would be acting as a sort of medical re-certification investigator twice a week, which is unnecessary, burdensome on both debtor and collector, and potentially harassing.
View this comment in the discussion thread
paperbag
7
I think the requirement for a debt collector to send a validation notice 5 days after the initial contact is backwards. I believe communication between the debtor and debt collector would be improved if the debtor has the validation notice before the initial telephone contact. The debt collector should be required to mail the debtor a validation notice 5 days before any phone contact, not 5 days after. Otherwise, the debtor is speaking with an unknown caller, who has surprised them with a demand for money. The debtor has not been provided with any time to prepare their thoughts, or to formulate important questions about the alleged debt. They may be caught "off guard", increasing the fear and anxiety of the debtor, which would necessarily lead to impaired verbal communication. The debtor has no written factual statement to refer to during the phone call, while the debt collector has all of the factual details in from of them on their computer screen, and can cite facts and figures. This situation creates an imbalance of power not conducive to good communication. This proposal to require debt collectors to send a validation notice 5 days before the first telephone contact would impose no financial burden on the debt collector, because validation notices are already required to be sent to the debtor. It is simply a change in the timing of an already existing requirement.
View this comment in the discussion thread