A rule is being proposed that would overhaul debt collection by capping collector contact attempts and ensuring that companies collect the correct debt.
Under the proposal, debt collectors would be required to have more and better information about the debt before they collect it. As they’re collecting the debt, companies would be required to limit communications, clearly disclose debt details, and make it easier to dispute the debt, the Consumer Financial Protection Bureau said Thursday.
When responding to disputes, collectors would be prohibited from continuing to pursue debt without sufficient evidence. These requirements would follow the debt if it were sold or transferred.