In May 2019 the CFPB proposed amendments the the Fair Debt Collection Practices Act (FDCPA). The proposal would provide consumers with clear protections against harassment by debt collectors and straightforward options to address or dispute debts. Among other things, the amendment would set clear limits on the number of calls debt collectors may place to reach consumers on a weekly basis.
From the CFPB release May 07, 2019:
Establish a clear, bright-line rule limiting call attempts and telephone conversations: The proposed rule generally would limit debt collectors to no more than seven attempts by telephone per week to reach a consumer about a specific debt. Once a telephone conversation between the debt collector and consumer takes place, the debt collector must wait at least a week before calling the consumer again.
If the proposed changes take place, consumers would be more likely to have late payments lead to vehicle repossession, an American Financial Services Association (AFSA) report suggests. The report that was published in late 2019 suggest that limit calls to delinquent borrower would lead to higher numbers of those delinquent accounts because, on average, it takes at least 30 calls to a debtor in a given month before contact can even be established.
Under the proposed CFPB changes, those calls would be limited to just seven (7) attempts per week. Given the formula of calls required currently and the proposed limits on calls, delinquent accounts will flow to a repossession status at an accelerated pace and in higher numbers resulting in higher work loads for collateral recovery agencies nationwide.
The Proposed Rule