If you’re in the industry, you may be concerned about the implications of the Consumer Financial Protection Bureau’s (CFPB) two new rules issued under the Fair Debt Collection Practices Act, effective Nov. 30, 2021.

  • The first rule focuses on debt collection communications and unfair practices relating to consumer debt. 
  • The second rule focuses on disclosures debt collectors must provide to consumers at the beginning of collection communications. 

The two rules have many concerned about tracking and adherence:

  • Time and place restrictions/limits on where and when a debt collector may communicate with customers
  • Call frequency restrictions with the 7/7/7 Rule
  • Introduction of limited-content messages
  • Email and text opt-out procedures
  • Social media applications

With these new restrictions, the impact on the effectiveness of email, short message service (SMS), a text messaging service component of most phone, internet, and mobile device systems, and call center channels, remains to be seen. There is one channel, if done correctly, that can be very effective and is not restricted under this new rule—direct mail. This isn’t the old practice of sending system-generated dunning notices, but a new age of collections marketing informed by data and designed to navigate customer filters.

Many organizations view direct mail as too expensive or ineffective. We’ll show you how we can innovate your collections communications approach to deliver better results, like higher payment rates, higher enrollment rates in work-out programs, lower roll rates, and higher overall cure rates. Other clients have achieved results as substantial as a 31% lift in customer engagement, a 4X lift in response rates, a 24% reduction in roll rates, and a 13% lift in payment rates. 

We would welcome the opportunity to provide additional information and insights on how we can help your business. Please contact, jheine@creative-solution.com or 302-543-8533 for a no-obligation introductory call.

1In connection with the collection of a debt, the debt collector my not place more than seven telephone calls to a person within seven consecutive days, or within seven days after a phone conversation with the person about that debt. Voicemails and ringless voicemails count as calls.