Consumer expectations alone do not create new legal requirements under the law, but creditors expect the agencies they enlist to treat consumers fairly.For ARM businesses looking to become customer service and industry leaders, understanding how consumers view the proposed CFPB rules and why should be of utmost importance.
1. Confusion Over the Need for E-Sign Consent for All “Required Disclosures”
“The new rules should not deviate from the statutory requirements of E-Sign. Regardless of what the statute says, you always must make sure that validation notice is sent either in paper form by snail mail or by email after receiving some kind of E-Sign consent from the consumer.” – Margot Saunders
2. Excessive Calling, Unlimited Texting
“The rule does permit consumers to say, ‘Stop calling or stop texting or stop communicating with me via any particular medium,’ and we think that’s good. We’re a little disappointed there’s not some requirement to tell consumers they have that right.” – Margot Saunders
3. Sending Emails and Hyperlinks Without Taking Internet Access Into Account
“Tricking the consumer into paying something or having to respond to a garnishment notice because they missed all the prior notices isn’t good policy.” – Margot Saunders
4. Texting for Non-Writing Communications
“We’re proposing in our comments that for the original communication . . . texts comply with the reassigned number database to ensure they are actually dealing with [the right consumer].” – Margot Saunders
5. Sending Limited Content Messages
“In my opinion, and the opinion of my colleagues and a lot of other people, there is no statutory authority for the Bureau to authorize communication that is not covered under the rules for all communications.” – Margot Saunders
6. Threatening to Sue to Recover Out-of-Statute Debts
“We think it’s very hard to imagine why the new rules do not contemplate a disclosure that appropriately apprises the least sophisticated consumer of the risks of paying an out-of-statute debt. This proposed rule goes backwards in allowing threats of litigation or actual litigation.” – Margot Saunders
Tune in to Hear Both Perspectives
Disclaimer: Ontario Systems is a technology company and provides this blog article solely for general informational and marketing purposes. You should not rely on the content of this material for any other purpose or as specific guidance for your company. Ontario Systems’ advice, services, tools and products described herein do not guarantee compliance with any law or industry standard. You are ultimately responsible for your own company’s actions and compliance efforts. Because everyone’s situation is different, you must consult your own attorneys, accountants, and/or other advisors to obtain specific advice on your company’s compliance, legal, tax, regulatory and/or other business needs. Despite Ontario Systems’ efforts to provide current and up-to-date information, you need to recognize that the information contained herein may become outdated quickly and may contain errors and/or other inaccuracies.
© 2019 Ontario Systems, LLC. All rights reserved. Information contained in this document is subject to change. Reproduction of this publication is not permitted without the express permission of Ontario Systems, LLC.
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