Trump Administration's New Rule Would Allow Debt Collectors To Send Unlimited Texts, Emails

A proposed debt collection rule announced Tuesday by the Consumer Financial Protection Bureau (CFPB) would allow collectors to send unlimited text messages and emails to those who owe money, while limiting calls to seven times a week.

The proposal updates the rules of the Fair Debt Collection Practices Act passed in 1977, which allowed debt collectors to call individuals who have missed payments. Technology has changed since then, with CFPB director Kathleen Kraninger saying that the goal of the new regulation is to "modernize the legal regime for debt collection."

The proposal would allow those who owe money a way to opt out of the texts and emails and also make it easier for them to get information on their missed payments.

There was swift backlash to the proposal from consumer groups.

"We are horrified that the CFPB's proposed rule will actually authorize harassment of consumers through phone calls, emails and texts," Margot Saunders, an attorney at the National Consumer Law Center, said in a statement.

Michael Froehlich, a consumer rights lawyer at Community Legal Services in Philadelphia told the Philadelphia Inquirer that the new proposal is a "huge missed opportunity to really address some of the predatory and unlawful actions that our clients face everyday."

Froehlich claimed that the seven calls a week would only apply to one debt an individual has, so if that person has multiple debts they could receive much more than seven calls per week. In its annual report to Congress in April, the CFPB said that it had received around 81,500 complaints in regards to debt collection.

The bureau says that they are open to feedback on the draft rules.

"As the CFPB moves to modernize the legal regime for debt collection, we are keenly interested in hearing all views so that we can develop a final rule that takes into account the feedback," Kraninger said.

President Trump in June 2018 nominated Kraninger for CFPG director, a position previously been held by current acting White House Chief of Staff Mick Mulvaney.

Sen. Elizabeth Warren of Massachusetts criticized the nomination of Kraninger, who was confirmed on a 50–49 party-line vote.