There are a lot of households in debt. According to the Federal Reserve, household debt in America hit a record $14.6 trillion in the spring of 2021 and there was $17 billion in credit card debt in the third quarter of 2021. With all this debt, it is no surprise that debt collection has become a multi-billion-dollar industry, with more than 8,000 debt collection firms in the United States.

The Consumer Financial Protection Bureau has recently updated rules for debt collection. Debt collectors now have the authority to direct message (DM), text, email, as well as contact you on your social media channels, such as Facebook, Instagram, and Twitter to collect unpaid debts.

The new change, which took effect November 30th, brings the decades-old Fair Debt Collection Practices Act up to speed with the current digital age. When the 1977 Fair Debt Collection Practices Act was first written social media and text messaging did not exist. Although debt collectors were not previously prohibited from contacting consumers over text or on social media, the revised rules are designed to provide clarity in 2021 and beyond.

The first rule, which was announced last year, clarifies how debt collectors can use email, text messages, social media, and other ways to communicate with consumers. The second clarifies the disclosures that debt collectors must give to consumers when they first make contact.

A debt collector is permitted to send you a friend or follower request, however, they must identify themselves as a debt collector. Although there is no cap on the number of messages they can send you, they must provide a straightforward way for you to opt out of receiving further communications from them.

There is no need to be concerned about your friends and family hearing about your debts on social media, as debt collectors are not allowed to share debt information on your profile page, or in comments that could be seen by your friends, followers, contacts, or the public. All communications regarding your debts must be conducted by private message.

Debt collectors can also contact you by email and text messages, however they must offer the ability to opt out or unsubscribe from receiving messages from them.

For debt collection phone calls, the new rules restrict how often collectors can call you. They are now limited to seven calls per week per account in collection. If you have already engaged in a phone conversation with a debt collector, then they are prohibited from calling you about that debt again within seven days of the call.

The revised rules also prohibit debt collectors from suing or threatening to sue on money a consumer borrowed and did not repay but which is no longer legally collectable because a certain number of years have passed.

Before debt collectors can disclose the existence of a debt to a consumer reporting agency, they must take specific steps to inform you of the debt by either speaking to you via phone or in person, or by sending an electronic communication (including social media) or regular mail. The debt collector must wait at least 14 days after the communication before reporting a defaulted debt.

If you have unsecured debt such as payday and installment loans, credit cards, medical and phone bills, Progressive Debt Relief has free consultations available to discuss options to becoming debt free by calling 1.877.590.1847 or submitting our contact form.