Menendez, Brown rail against new rules for debt collector’s communications

Menendez, Brown rail against new rules for debt collector’s communications

Hudson Reporter

 

In the wake of a crackdown on robocalls, the Consumer Financial Protection Bureau proposed a rule that would allow debt collection companies to send unlimited texts and emails to consumers. Just last year, debt collection tactics have led to about 82,000 complaints to the CFPB, and nearly 458,000 to the Federal Trade Commission.

Senators Bob Menendez and Sherrod Brown (D-Ohio) are calling on CFPB Director Kathy Kranixnger to reverse the proposed rule, which would enable intrusive communications. Consumers who don’t have unlimited texting plans would be on the hook for any texts they receive from debt collectors.

“Just when you thought we’d made real headway in cracking down on those annoying, aggressive robocalls, along comes the Trump Administration, giving the green light to debt collectors so they can start inundating people with unlimited texts and emails,” Menendez said. “Come on, this proposal is unacceptable. Too many debt collectors already use aggressive tactics, the last thing we should be doing is giving them more ways to harass consumers.”

The proposed rule would also allow debt collectors to call consumers up to seven times a week, for each debt they have. For example, someone with six debts could receive up to 42 calls per week.