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Compliance resources Other applicable requirements Debt Collection (FDCPA)
DEBT COLLECTION RULE FAQS
The questions and answers below pertain to compliance with the Debt Collection
Rule.
This is a Compliance Aid issued by the Consumer Financial Protection Bureau. The
Bureau published a Policy Statement on Compliance Aids, available here, that
explains the Bureau’s approach to Compliance Aids.
TOPICS
* Limited-Content Messages
* Telephone Call Frequency
* Telephone Call Frequency: Presumptions
* Telephone Call Frequency: Excluded Calls
* Telephone Call Frequency: Rebutting the Presumptions
* Validation Information
* Validation Information: Residential Mortgage Debt
LIMITED-CONTENT MESSAGES
1. What is a “limited-content message”? Show Hide
Under the Debt Collection Rule, a “limited-content message” is a message that:
* Is a voicemail;
* Is for a consumer; and
* Includes the required content.
The required content includes the following:
* A business name for the debt collector that does not indicate that the caller
is in the business of collecting debts;
* A request that the consumer reply to the message;
* The name or names of one or more natural persons whom the consumer can
contact to reply to the debt collector; and
* A telephone number or numbers that the consumer can use to reply to the debt
collector.
12 CFR § 1006.2(j).
In addition to the required content, a limited-content message may also include
one or more of the following items of optional content:
* A salutation;
* The date and time of the message;
* Suggested dates and times for the consumer to reply to the message; and
* A statement that, if the consumer replies, the consumer may speak to any of
the company’s representatives or associates.
Under the Rule, debt collectors must not, with some exceptions, communicate in
connection with the collection of a debt with a third party. 12 CFR § 1006.6(d).
Since a limited-content message is an attempt to communicate and not a
communication under the Debt Collection Rule, as discussed in Debt Collection
Limited-Content Messages Question 2, a debt collector who leaves only a
limited-content message does not violate the prohibition against third-party
communications. 12 CFR § 1006.2(b) and Comment 2(d)-2.
In addition, leaving a limited-content message does not violate the Debt
Collection Rule’s requirement to meaningfully disclose the caller’s identity
with respect to that voicemail message. Comment 2(j)-3.
For more information about the definition of a limited-content message under the
Debt Collection Rule, see Section 3.3 in the Debt Collection Small Entity
Compliance Guide .
Updated October 1, 2021
2. Is a limited-content message a “communication”? Show Hide
No.
Under the Debt Collection Rule, a “communication” is defined as the conveying of
information regarding a debt directly or indirectly to any person through any
medium, including any oral, written, electronic, or other medium. For example, a
communication may occur in person or by telephone, audio recording, paper
document, mail, email message, text message, social media, or other electronic
media. 12 CFR § 1006.2(d) and Comment 2(d)-1. An “attempted communication” is
defined as any act to initiate a communication or other contact about a debt
with any person through any medium, including by soliciting a response from such
person. An act to initiate a communication or other contact about a debt is an
attempt to communicate regardless of whether the attempt, if successful, would
be a communication that conveys information regarding a debt directly or
indirectly to any person. 12 CFR § 1006.2(b) and Comment 2(b)-1.
A limited-content message is an “attempt to communicate” but is not a
“communication” under the Debt Collection Rule because it does not convey
information regarding a debt directly or indirectly to a person. 12 CFR §
1006.2(b) and (d). Thus, a limited-content message is subject to the
requirements and prohibitions that apply to attempts to communicate but not to
the requirements and prohibitions that apply only to communications.
If, however, a debt collector does not include all of the required content,
knowingly leaves the voicemail for anyone other than a consumer, leaves the
message in a medium other than voicemail, or adds content beyond the required
and optional content, the message is not a limited-content message. Instead,
generally, that message is an attempt to communicate. 12 CFR § 1006.2(b).
Additionally, if content is added to the message beyond the required and
optional content, and the additional content conveys information about a debt,
the message is a communication. 12 CFR § 1006.2(d) and Comment 2(j)-1.
For more information about limited-content messages, see Section 3.3.3 in the
Debt Collection Small Entity Compliance Guide . For more information about the
definitions of “attempt to communicate” and “communication,” see Section 3.3 in
the Debt Collection Small Entity Compliance Guide .
Updated October 1, 2021
3. Is a voicemail a limited-content message if it contains information that is
required by state law but that is not required or optional content under the
Rule? Show Hide
No. If a voicemail includes any content beyond the required or optional content
in the Debt Collection Rule, the voicemail is not a limited-content message. 12
CFR § 1006.2(j). If a state law requires additional or different information to
be included in a voicemail message left by a debt collector, a debt collector’s
voicemail message in that state would not be a limited-content message. For more
information about the required and optional content for limited-content
messages, see Debt Collection Limited-Content Messages Question 1, above.
However, the inclusion of state-required statements or information does not mean
the voicemail message is automatically a communication under the Debt Collection
Rule. As discussed in Debt Collection Limited-Content Messages Question 2, a
voicemail is a communication under the Rule only if it conveys information about
a debt, directly or indirectly, to any person through any medium.
For more information about limited-content messages under the Debt Collection
Rule, see Section 3.3.3 in the Debt Collection Small Entity Compliance Guide .
For more information about the definition of “communication,” see Section 3.3 in
the Debt Collection Small Entity Compliance Guide .
Updated October 1, 2021
4. If a call drops or is otherwise interrupted while a debt collector is leaving
a limited-content message, is the voicemail still a limited-content message?
Show Hide
No. If a call drops or is otherwise interrupted and results in a partial
voicemail that does not include all of the required content, that partial
voicemail is not a limited-content message. 12 CFR § 1006.2(j).
As discussed in Debt Collection Limited-Content Messages Question 2, if a
voicemail contains information that conveys information about a debt, the
voicemail is not a limited-content message and is a communication, even as a
partial message. 12 CFR § 1006.2(d). If, however, a debt collector attempts to
leave only a limited-content message, but the message is cut off, it is not a
communication because the partial message does not contain information about a
debt. For example, if the partial message contains only some of the required or
optional limited-content message content, then the partial message is an attempt
to communicate and not a communication.
For more information about limited-content messages, see Section 3.3.3 in the
Debt Collection Small Entity Compliance Guide . For more information about the
definitions of “attempt to communicate” and “communication” see Section 3.3 in
the Debt Collection Small Entity Compliance Guide .
Updated October 1, 2021
5. Can a debt collector use a pre-recorded voicemail message to deliver a
limited-content message? Show Hide
Yes. The Debt Collection Rule does not prohibit a debt collector from using a
pre-recorded message to leave a limited-content message. However, there are
requirements in the Telephone Consumer Protection Act of 1991 (47 U.S.C. § 227)
regarding the use of pre-recorded messages that a debt collector may want to
review before leaving a pre-recorded message.
For more information about limited-content messages, see Section 3.3.3 in the
Debt Collection Small Entity Compliance Guide .
Updated October 1, 2021
6. Are Zortman voicemails considered limited-content messages? Show Hide
No.
In Zortman v. J.C. Christensen & Assocs., Inc. (870 F. Supp. 2d 694 (D. Minn.
2012)), the debt collector left the following voicemail: “We have an important
message from [company’s name]. This is a call from a debt collector. Please call
[company’s telephone number].”
The voicemail message from Zortman is not a limited-content message because it
does not contain all of the required content for a limited-content message and
it includes additional content that is neither required content nor optional
content for limited-content messages, specifically that the call is from a debt
collector. 12 CFR § 1006.2(j). For more information about the required and
optional content for limited-content messages, see Debt Collection Limited
Content Messages Question 1. Since the voicemail message in Zortman is not a
limited-content message, it does not receive a safe harbor from the prohibition
against third party communications under the Rule, discussed in Debt Collection
Limited-Content Messages Question 2. 12 CFR § 1006.2(j).
For more information about limited-content messages, see Section 3.3.3 in the
Debt Collection Small Entity Compliance Guide .
Updated October 1, 2021
7. Does the Debt Collection Rule prohibit a debt collector from leaving a
Zortman voicemail? Show Hide
The Debt Collection Rule does not address whether debt collectors may leave the
voicemail message from Zortman v. J.C. Christensen & Assocs., Inc. (870 F. Supp.
2d 694 (D. Minn. 2012)), which is described in Debt Collection
Limited-Content-Messages Question 6.
The court in Zortman determined that the voicemail left for the consumer in that
case was not a communication under the FDCPA in the circumstances presented by
the case.
For more information about limited-content messages, see Section 3.3.3 in the
Debt Collection Small Entity Compliance Guide .
Updated October 1, 2021
8. Is a debt collector required to use their legal or registered Doing Business
As (DBA) name in a limited-content message? Show Hide
No. The Debt Collection Rule does not require the business name in a
limited-content message to be the debt collector’s legal name or registered DBA.
As discussed in Debt Collection Limited-Content Messages Question 1, in order
for a voicemail message to be a limited-content message under the Debt
Collection Rule, the voicemail must contain certain required content, including
a business name for the debt collector that does not indicate that the caller is
in the business of collecting debts. 12 CFR § 1006.2(j)(1). The Debt Collection
Rule does not change existing case law regarding whether or what names indicate
or do not indicate that a debt collector is in the debt collection business. For
example, if a debt collector could properly use the business name on an envelope
without violating the FDCPA or the Debt Collection Rule, the debt collector
could use the same business name in a limited-content message. 12 CFR §
1006.22(f)(2). Further, as discussed in Debt Collection Limited-Content Messages
Question 1, leaving a limited-content message does not violate the requirement
to meaningfully disclose the caller’s identity with respect to that voicemail
message, even though that message may contain abbreviations or may not include
the debt collector’s full legal name. 12 CFR § 1006.2(j) and Comment 2(j)-3.
State licensing or other laws, however, may require a debt collector to use
their registered DBA when leaving messages for consumers. If a debt collector’s
registered DBA indicates that the debt collector is in the business of debt
collection, and if, pursuant to a State licensing or other legal requirement,
the debt collector is required to use its registered DBA in a voicemail for a
consumer, the voicemail would not be a limited-content message. 12 CFR §
1006.2(j)(1). In that case, because, under the Debt Collection Rule, a
limited-content message must contain a business name and the business name must
not indicate the caller is in the business of collecting debts, the debt
collector would not be able to leave limited-content messages that comply with
State law. Additionally, a debt collector must also comply with all other
applicable provisions of the Debt Collection Rule when disclosing their business
name in a limited-content message, such as the prohibition against using false,
deceptive, or misleading representations or means in connection with the
collection of any debt. 12 CFR § 1006.18(a). For more information about the
prohibition against false, deceptive, or misleading representations or means,
see Section 8 in the Debt Collection Small Entity Compliance Guide .
For more information about limited-content messages, see Section 3.3.3 in the
Debt Collection Small Entity Compliance Guide .
Updated October 1, 2021
9. If the recipient of a limited-content message researches the business name
and identifies the caller as a debt collector, does that mean the voicemail is
no longer a limited-content message? Show Hide
No. A message does not fail to be a limited-content message merely because a
person who hears the message researches the debt collector’s business name, and,
in doing so, determines that the caller is in the business of debt collection.
As discussed in Debt Collection Limited-Content Messages Question 1, in order
for a voicemail message to be a limited-content message under the Debt
Collection Rule, the voicemail must contain certain required content, including
a business name for the debt collector that does not indicate that the caller is
in the business of collecting debts. 12 CFR § 1006.2(j)(1). As long as the
business name used by the debt collector, on its own, does not indicate that the
caller is in the business of collecting debts, the message is a limited-content
message, provided that it meets the other requirements for a limited-content
message. 12 CFR § 1006.2(j).
For more information about limited-content messages, see Section 3.3.3 in the
Debt Collection Small Entity Compliance Guide .
Updated October 1, 2021
TELEPHONE CALL FREQUENCY
1. Does the Debt Collection Rule limit the frequency of telephone calls a debt
collector can place, or telephone conversations a debt collector may have, about
a debt? Show Hide
The Debt Collection Rule does not impose a specific “limit” or “cap” on the
frequency of telephone calls that a debt collector may place or conversations
that a debt collector may have about a debt. Instead, the Rule establishes a
presumption of a violation of, and a presumption of compliance with, the
prohibition against harassing, oppressive, or abusive conduct, based on the
frequency of a debt collector’s telephone calls and conversations. These
presumptions are discussed in Debt Collection Call Frequency: Presumptions
Question 1.
In general, under the Debt Collection Rule, a debt collector must not engage in
conduct in connection with the collection of a debt if the natural consequence
of that conduct is to harass, oppress, or abuse any person. 12 CFR § 1006.14(a).
In addition to this general prohibition, the Debt Collection Rule specifically
prohibits a debt collector from placing telephone calls or engaging any person
in telephone conversations repeatedly or continuously with the intent to annoy,
abuse, or harass any person at the called number. 12 CFR § 1006.14(b)(1). This
specific prohibition related to telephone calls and telephone conversations will
be referred to as “the prohibition against repeated or continuous telephone
calls or conversations” throughout these FAQs.
A debt collector who complies with the specific prohibition against repeated or
continuous telephone calls or conversations complies with the general
prohibition against engaging in conduct the natural consequence of which is to
harass, oppress, or abuse any person solely with respect to the frequency of the
debt collector’s telephone calls. A debt collector nevertheless could violate
the general prohibition if the natural consequence of another aspect of the debt
collector’s telephone calls, unrelated to frequency, is to harass, oppress, or
abuse any person in connection with the collection of a debt. Comment
14(b)(1)-1.
For more information about the prohibition against repeated or continuous
telephone calls or conversations, see Section 7 in the Debt Collection Small
Entity Compliance Guide .
Updated October 1, 2021
TELEPHONE CALL FREQUENCY: PRESUMPTIONS
1. What are the presumptions related to telephone call frequency? Show Hide
Under the Debt Collection Rule, a debt collector is presumed to comply with the
prohibition against repeated or continuous telephone calls or conversations if
the debt collector places a telephone call to a particular person in connection
with the collection of a particular debt neither:
* More than seven times within seven consecutive calendar days [“call frequency
prong”]; nor
* Within a period of seven consecutive calendar days after having had a
telephone conversation with the person in connection with the collection of
such debt [“conversation frequency prong”].
For the presumption of compliance to apply, the debt collector must not exceed
either prong of the standard.
12 CFR § 1006.14(b)(2)(i).
Conversely, a debt collector is presumed to violate the prohibition against
repeated or continuous telephone calls or conversations if the debt collector
places a telephone call to a particular person in connection with the collection
of a particular debt:
* More than seven times within seven consecutive calendar days [“call frequency
prong”]; or
* Within a period of seven consecutive calendar days after having had a
telephone conversation with the person in connection with the collection of
such debt [“conversation frequency prong”].
The presumption of a violation applies if the debt collector exceeds one or both
prongs of the standard.
12 CFR § 1006.14(b)(2)(ii).
The term particular debt means each of a consumer’s debts in collection, except
in the case of student loan debt. 12 CFR § 1006.14(b)(4). For more information
about the definition of particular debt as it applies to student loan debt, see
Section 7.1.1 in the Debt Collection Small Entity Compliance Guide . In
addition, certain telephone calls are excluded from the presumptions related to
telephone call frequency. 12 CFR § 1006.14(b)(3). For more information about
excluded telephone calls, see Debt Collection Telephone Call Frequency: Excluded
Calls Question 1.
For more information about the prohibition against repeated or continuous
telephone calls or conversations, see Section 7 in the Debt Collection Small
Entity Compliance Guide .
Updated October 1, 2021
2. Do incoming telephone calls from a consumer to a debt collector about a debt
count for purposes of the “call frequency prong” of the presumptions related to
telephone call frequency? Show Hide
No. When a consumer places a telephone call to a debt collector, that telephone
call is not a telephone call placed by the debt collector. Therefore, that
telephone call is not included when determining whether the debt collector
complied with the “call frequency prong” of the presumptions related to
telephone call frequency. 12 CFR § 1006.14(b)(2). For more information about the
“call frequency prong” of the presumptions related to telephone call frequency,
see Debt Collection Telephone Call Frequency: Presumptions Question 1.
However, if a debt collector has a conversation with the consumer about a debt
(no matter which party initiated the call), and the debt collector then places a
telephone call to the consumer to discuss the same debt within the next seven
days, the debt collector is presumed to violate the “conversation frequency
prong” of the presumptions related to telephone call frequency, unless an
exception applies. 12 CFR § 1006.14(b)(2)(ii). See also Comment 14(b)(4)-1. For
more information about the “conversation frequency prong” of the presumptions
related to telephone call frequency, see Debt Collection Telephone Call
Frequency: Presumptions Question 1.
For more information about the prohibition against repeated or continuous
telephone calls or conversations, see Section 7 in the Debt Collection Small
Entity Compliance Guide .
Updated October 1, 2021
3. Does the prohibition against repeated or continuous telephone calls or
conversations apply to other media types, such as electronic messages that may
be received on a mobile phone? Show Hide
No. The prohibition against repeated or continuous telephone calls or
conversations only applies to telephone calls; it does not apply to other media
types, such as text messages, email, in-person interactions, or social media.
Because the prohibition against repeated or continuous telephone calls or
conversations does not apply to media other than telephone calls, the
presumptions related to telephone call frequency discussed in Debt Collection
Telephone Call Frequency: Presumptions Question 1 do not apply to media other
than telephone calls. Comment 14(b)-1.
However, a debt collector’s conduct using any media, such as in-person
interactions, telephone calls, audio recordings, paper documents, mail, email,
text messages, and social media, including the cumulative effect of the debt
collector’s conduct across multiple media types, may still violate the general
prohibition against harassing, oppressive, or abusive conduct. 12 CFR §
1006.14(a).
For more information about the prohibition against repeated or continuous
telephone calls or conversations, see Section 7 in the Debt Collection Small
Entity Compliance Guide . For more information about the presumptions related to
telephone call frequency, see Debt Collection Telephone Call Frequency:
Presumptions Question 1.
Updated October 1, 2021
4. How do the presumptions related to telephone call frequency apply if a
consumer has multiple telephone numbers? Show Hide
The presumptions related to telephone call frequency, as discussed in Debt
Collection Telephone Call Frequency: Presumptions Question 1, apply per person,
per debt, regardless of how many telephone numbers are associated with a
particular person. 12 CFR § 1006.14(b)(2)(i) and (ii). For example, if a debt
collector has eight different telephone numbers associated with a consumer and
places one unanswered call to each of the telephone numbers about the same debt
within seven consecutive days, the debt collector is presumed to violate the
“call frequency prong” of the presumptions related to telephone call frequency,
as discussed in Debt Collection Telephone Call Frequency: Presumptions Question
1, unless an exception applies. 12 CFR § 1006.14(b)(2)(ii).
For more information about the prohibition against repeated or continuous
telephone calls or conversations, see Section 7 in the Debt Collection Small
Entity Compliance Guide . For more information about the presumptions related to
telephone call frequency, see Debt Collection Telephone Call Frequency:
Presumptions Question 1.
Updated October 1, 2021
5. If a debt collector learns that a telephone number the debt collector
previously called is not associated with the consumer, do those calls count
toward the presumptions related to telephone call frequency for the consumer?
Show Hide
No. Misdirected calls do not count toward the presumptions related to telephone
call frequency for the consumer, since the telephone number is not associated
with the consumer and the consumer does not answer telephone calls to that
number. Comment 14(b)(2)(i)-3. However, the presumptions related to telephone
call frequency, discussed in Debt Collection Telephone Call Frequency:
Presumptions Question 1, apply to all persons, not just to the consumer or the
person who owes or allegedly owes the debt. 12 CFR § 1006.14(b)(2). Thus, the
calls placed do count toward the presumptions related to telephone call
frequency for the person who actually received the call attempt.
For more information about the prohibition against repeated or continuous
telephone calls or conversations, see Section 7 in the Debt Collection Small
Entity Compliance Guide . For more information about the presumptions related to
telephone call frequency, see Debt Collection Telephone Call Frequency:
Presumptions Question 1.
Updated October 1, 2021
6. How does a telephone conversation about multiple debts count for purposes of
the “conversation frequency prong” of the presumptions related to telephone call
frequency? Show Hide
If a debt collector and a consumer have a telephone conversation about multiple
debts, the debt collector has engaged in a telephone conversation in connection
with the collection of each debt discussed. This is true regardless of which
party (the debt collector or the consumer) initiated the telephone call or the
discussion of each debt. 12 CFR § 1006.14(b)(2)(i)(B) and Comment 14(b)(4)-1.ii.
As a result, if, during the seven-day period after the conversation, the debt
collector places a telephone call to the consumer regarding any of the debts
discussed in the conversation, the debt collector is presumed to have violated
the “conversation frequency prong” of the presumptions relating to call
frequency, discussed in Debt Collection Telephone Call Frequency: Presumptions
Question 1, unless an exception applies. Comment 14(b)(4)-1.ii.
For example, assume a debt collector is attempting to collect a medical debt and
a credit card debt from the same consumer and the debt collector places a
telephone call to, and initiates a telephone conversation with, the consumer
about the collection of the medical debt. The consumer states that they do not
want to discuss the medical debt, and instead initiates a discussion about the
credit card debt. The debt collector has had a conversation with the consumer
with respect to the medical debt and the credit card debt. If, during the
seven-day period following the conversation, the debt collector places a
telephone call to the consumer regarding either debt, the debt collector would
be presumed to violate the “conversation frequency prong” of the presumptions
relating to call frequency for that debt, even though the consumer initiated the
conversation about the credit card debt. See Comments 14(b)(4)-1.ii. and -2.vi.
For more information about the presumptions related to telephone call frequency,
see Debt Collection Telephone Call Frequency: Presumptions Question 1. For more
information about the prohibition against repeated or continuous telephone calls
or conversations, see Section 7 in the Debt Collection Small Entity Compliance
Guide .
Updated October 1, 2021
7. If a debt collector calls a consumer to discuss multiple debts the consumer
owes or allegedly owes but does not reach the consumer or leave any voicemails,
how do those telephone calls count for purposes of the “call frequency prong” of
the presumptions related to telephone call frequency? Show Hide
If a debt collector calls a consumer to discuss multiple debts the consumer owes
or allegedly owes, but the consumer does not answer the call and the debt
collector does not leave a voicemail, the debt collector counts the telephone
call as a telephone call in connection with the collection of at least one
particular debt, unless an exclusion applies. Comment 14(b)(4)-1.i. For example,
assume that a debt collector is attempting to collect a medical debt and a
credit card debt from the same consumer and the debt collector places four
unanswered telephone calls to the consumer. The debt collector may count the
calls for the purposes of the “call frequency prong” of the presumptions related
to telephone call frequency in several different ways. To list just a few
examples, the debt collector may:
* Count all four of the calls as calls placed in connection with the collection
of the medical debt or as calls placed in connection with the collection of
the credit card debt.
* Count all four of the calls as calls placed in connection with the collection
of the medical debt and the credit card debt.
* Count two of the calls as calls placed in connection with the collection of
the medical debt, and two of the calls as calls placed in connection with the
collection of the credit card debt.
Comment 14(b)(4)-1.i.
For more information about the presumptions related to telephone call frequency,
see Debt Collection Telephone Call Frequency: Presumptions Question 1. For more
information about the prohibition against repeated or continuous telephone calls
or conversations, see Section 7 in the Debt Collection Small Entity Compliance
Guide .
Updated October 1, 2021
8. What if a debt collector operates in a state that has different rules
regarding how many times a debt collector may call or have a conversation with a
consumer about a debt? Show Hide
The Debt Collection Rule does not preempt a state law that affords greater
protection to consumers, including, for example, by imposing limits or more
restrictive presumptions related to telephone call frequency.
For more information about the prohibition against repeated or continuous
telephone calls or conversations, see Section 7 in the Debt Collection Small
Entity Compliance Guide .
Updated October 1, 2021
TELEPHONE CALL FREQUENCY: EXCLUDED CALLS
1. Are certain telephone calls excluded from the presumptions related to
telephone call frequency? Show Hide
Yes. Under the Debt Collection Rule, certain telephone calls are excluded from
the telephone call frequencies. A telephone call placed to a person does not
count toward the telephone call frequencies if the telephone call is:
* Placed with direct prior consent. A person’s prior consent must be given
directly to the debt collector and the calls must be placed within a period
no longer than seven consecutive days after receiving the direct prior
consent. That is, if a person gives direct prior consent for additional
telephone calls about a particular debt to a debt collector, any telephone
calls that the debt collector thereafter places to the person about that
particular debt do not count toward the telephone call frequencies for a
period of up to seven consecutive days. A person’s direct prior consent may
also expire before the end of the seven-consecutive-day period. A person’s
direct prior consent expires when any of the following occur: (1) the person
consents to telephone calls in excess of the telephone call frequencies for a
period of less than seven days and such period has ended; (2) the person
revokes such direct prior consent; or (3) the debt collector has a telephone
conversation with the person regarding the particular debt. Comments
14(b)(3)(i)-2 and -3.
* Not connected to the dialed number. A debt collector’s telephone call does
not connect to the dialed number if, for example, the debt collector receives
a busy signal or an indication that the dialed number is not in service.
* Placed to certain permitted third parties. These parties include: a
consumer’s attorney, the creditor, the creditor’s attorney, the debt
collector’s attorney, or a consumer reporting agency (if otherwise permitted
by law).
12 CFR § 1006.14(b)(3).
For more information about the prohibition against repeated or continuous
telephone calls or conversations, see Section 7 in the Debt Collection Small
Entity Compliance Guide . For more information about the presumptions related to
telephone call frequency, see Debt Collection Telephone Call Frequency:
Presumptions Question 1.
Updated October 1, 2021
2. How long is a consumer’s direct prior consent valid? Show Hide
For purposes of the telephone call frequency exclusions, the maximum time a
consumer’s direct prior consent to additional telephone calls is valid under the
Debt Collection Rule is seven days, even if the consumer agrees to a longer
period. 12 CFR § 1006.14(b)(3) and Comment 14(b)(3)(i)-2. However, as discussed
in Debt Collection Telephone Call Frequency: Excluded Calls Question 1, once the
debt collector has a telephone conversation with the consumer regarding the
debt, the consumer’s direct prior consent expires. Further, a consumer may
revoke their direct prior consent for additional telephone calls at any time.
Any calls placed after the consumer’s direct prior consent expires count toward
the telephone call frequencies unless an exception applies, or the debt
collector obtains new direct prior consent from the consumer. See Debt
Collection Telephone Call Frequency: Excluded Calls Question 1 for additional
information about the exclusion for direct prior consent and the other
circumstances in which a consumer’s direct prior consent may expire.
For more information about the prohibition against repeated or continuous
telephone calls or conversations, see Section 7 in the Debt Collection Small
Entity Compliance Guide .
Updated October 1, 2021
3. What are some examples of calls that are connected to a dialed number and
calls that are not connected to a dialed number? Show Hide
Telephone calls that are not connected to the dialed number are excluded from
the telephone call frequencies. 12 CFR § 1006.14(b)(3). Thus, a telephone call
counts toward the telephone call frequencies if it connects to a dialed number,
unless the call is otherwise excluded as discussed in Debt Collection Telephone
Call Frequency: Excluded Calls Question 1.
The following are examples of telephone calls that connect to a dialed number:
* The telephone call causes a telephone to ring at the dialed number, but no
one answers the call.
* The telephone call causes a telephone to ring at the dialed number, but the
call does not connect to a voicemail.
* The telephone call causes a telephone to ring at the dialed number, but the
debt collector hangs up before anyone answers the call or the call connects
to a voicemail.
* The telephone call is connected directly to a voicemail, even if the
telephone does not ring and even if the debt collector is not able to leave a
message.
* The telephone call is answered, even if the telephone call subsequently
drops.
The following are examples of telephone calls that do not connect to a dialed
number:
* The telephone call results in a busy signal or an indication, such as a dial
tone or other sound, that the dialed number is not in service.
* The telephone call results in a message that the call cannot be completed as
dialed or the dialed number is out of service.
Comment 14(b)(3)(ii)-1.
For more information about the prohibition against repeated or continuous
telephone calls or conversations, see Section 7 in the Debt Collection Small
Entity Compliance Guide . For more information about the presumptions related to
telephone call frequency, see Debt Collection Telephone Call Frequency:
Presumptions Question 1. For more information about calls that are excluded from
the telephone call frequencies, see Debt Collection Telephone Call Frequency:
Excluded Calls Question 1.
Updated October 1, 2021
4. Is a limited-content message excluded from the presumptions related to
telephone call frequency? Show Hide
No. There is no specific exclusion from the telephone call frequencies in the
Debt Collection Rule for limited-content messages.
A telephone call counts toward the telephone call frequencies if it connects to
a dialed number, unless the call is otherwise excluded as discussed in Debt
Collection Telephone Call Frequency: Excluded Calls Question 1. If a debt
collector’s telephone call is connected to a voicemail or other recorded
message, it is considered connected. Comment 14(b)(3)(ii)-1. The Rule defines a
limited-content message as a voicemail message for a consumer that contains
specified required content and that may also contain certain optional content as
described in Debt Collection Limited-Content Messages Question 1. Since a
limited-content message is a voicemail message, it is considered a connected
call. For additional examples of calls that are considered connected or not
connected to a dialed number, see Debt Collection Telephone Call Frequency:
Excluded Calls Question 3.
For more information about the prohibition against repeated or continuous
telephone calls or conversations, see Section 7 in the Debt Collection Small
Entity Compliance Guide . For more information about the presumptions related to
telephone call frequency, seeDebt Collection Telephone Call Frequency:
Presumptions Question 1. For more information about calls that are excluded from
the telephone call frequencies, see Debt Collection Telephone Call Frequency:
Excluded Calls Question 1 and 3.
Updated October 1, 2021
5. Is a debt collector’s return telephone call responding to a consumer’s
inquiry about settling the consumer’s debt excluded from the presumptions
related to telephone call frequency? Show Hide
Depending on the facts and circumstances surrounding the return call, the call
may be an excluded call if it is placed with the consumer’s direct prior
consent, as discussed in Debt Collection Telephone Call Frequency: Excluded
Calls Question 1. 12 CFR § 1006.14(b)(3) and Comment 14(b)(3)(i)-2. For example,
if the consumer’s inquiry provided direct prior consent, the return telephone
call was placed by the debt collector within seven days of the consumer’s
inquiry, and the consent has not otherwise expired, the debt collector’s return
call is excluded from the telephone call frequencies.
For more information about the prohibition against repeated or continuous
telephone calls or conversations, see Section 7 in the Debt Collection Small
Entity Compliance Guide . For more information about the presumptions related to
telephone call frequency, see Debt Collection Telephone Call Frequency:
Presumptions Question 1. For more information about calls that are excluded from
the telephone call frequencies, see Debt Collection Telephone Call Frequency:
Excluded Calls Question 1.
Updated October 1, 2021
TELEPHONE CALL FREQUENCY: REBUTTING THE PRESUMPTIONS
1. What factors rebut the presumption of compliance with the prohibition against
repeated or continuous telephone calls or conversations? Show Hide
Under the Debt Collection Rule, to rebut the presumption of compliance, it must
be proven that a debt collector who did not place telephone calls in excess of
the telephone call frequencies nevertheless caused a telephone to ring or
engaged a person in telephone conversation repeatedly or continuously with
intent to annoy, abuse, or harass a person at the called number:
Presumption of Compliance Rebuttal Factors. Factors that may rebut the
presumption of compliance include but are not limited to:
* Call frequency and pattern. The frequency and pattern of telephone calls the
debt collector places to a person, including the intervals between the
telephone calls. The considerations relevant to this factor include whether
the debt collector places telephone calls to a person in rapid succession
(e.g., two unanswered telephone calls to the same telephone number within
five minutes) or in a highly concentrated manner (e.g., seven telephone calls
to the same telephone number within one day). It may also be relevant if the
debt collector concentrates telephone calls on days that may be less
convenient for the consumer (such as Sundays or holidays). Application of
this factor is not limited to rapid succession or highly concentrated
calling, however, and is dependent on all of the relevant facts and
circumstances that may indicate an intent on the part of the debt collector
to harass, annoy, or abuse the consumer.
* Voicemail frequency and pattern. The frequency and pattern of any voicemails
that the debt collector leaves for a person, including the intervals between
the voicemails. The considerations relevant to this factor include whether
the debt collector left voicemails for a person in rapid succession (e.g.,
two voicemails within five minutes left at the same telephone number) or in a
highly concentrated manner (e.g., seven voicemails left at the same telephone
number within one day).
* Content of prior communications. The content of a person’s prior
communications with the debt collector. Among the considerations relevant to
this factor are whether the person previously informed the debt collector,
for example, that the person did not wish to be contacted about the
particular debt, that the person was refusing to pay the debt, or that the
person did not owe the particular debt.
* Conduct in prior communications or attempts to communicate. The debt
collector’s conduct in prior communications or attempts to communicate with
the person. Among the considerations relevant to this factor are whether the
debt collector used obscene, profane, or otherwise abusive language in any
prior communications or attempts to communicate, used or threatened to use
violence or other criminal means to harm the person, or called at an
inconvenient time or place. The amount of time elapsed since any prior
communication with the person may also be relevant to this factor.
Comment 14(b)(2)(i)-2.
These and other factors may be considered either individually or in combination
with one another. The factors may be viewed in light of any other relevant facts
and circumstances and therefore may apply to varying degrees. Comment
14(b)(2)(i)-2.
For more information about the prohibition against repeated or continuous
telephone calls or conversations, see Section 7 in the Debt Collection Small
Entity Compliance Guide . For more information about the presumptions related to
telephone call frequency, see Debt Collection Telephone Call Frequency:
Presumptions Question 1.
Updated October 1, 2021
2. What factors rebut the presumption of a violation of the prohibition against
repeated or continuous telephone calls or conversations? Show Hide
Under the Debt Collection Rule, to rebut the presumption of a violation, it must
be proven that, despite the number of calls a debt collector made, the debt
collector did not cause a telephone to ring or engage any person in telephone
conversation repeatedly or continuously with intent to annoy, abuse, or harass
any person at the called number.
Presumption of Violation Rebuttal Factors. Factors that may rebut the
presumption of a violation include but are not limited to:
* Calls required by applicable law. Whether a debt collector placed a telephone
call to comply with or as required by applicable law. For example, a
telephone call to inform the consumer of available loss mitigation options in
compliance with the Bureau’s mortgage servicing rules under Regulation X, 12
CFR § 1024.39(a), may be an example of a call placed to comply with
applicable law.
* Calls related to active litigation. Whether a telephone call was directly
related to active litigation involving the collection of a particular debt. A
telephone call to complete a court-ordered communication or as part of
negotiations to settle active debt collection litigation involving the
collection of a particular debt may be examples of calls directly related to
active litigation involving the collection of a particular debt. However, the
debt collector must comply with the prohibition on communicating or
attempting to communicate with a consumer represented by an attorney with
regard to the specific debt. 12 CFR § 1006.6(b)(2).
* Consumer response calls. Whether a debt collector placed a telephone call in
response to a consumer’s request for additional information when the
exclusion for telephone calls made with the consumer’s direct prior consent
does not apply. For example, a consumer may tell the debt collector that the
consumer would like more information about a debt but end the call before the
debt collector can confirm whether the consumer’s general statement about
seeking more information constitutes the consumer’s consent for the debt
collector to place additional calls within the next seven days to provide the
requested information. A telephone call to provide the requested information
may be an example of a call placed in response to a consumer’s request for
additional information when the exclusion for calls made with the consumer’s
direct prior content does not apply.
* Consumer benefit calls. Whether a debt collector placed a telephone call to
convey information to the consumer that, as shown through evidence, would
provide the consumer with an opportunity to avoid a demonstrably negative
effect relating to the collection of the particular debt, where the negative
effect was not in the debt collector’s control, and where time was of the
essence.
Comment 14(b)(2)(ii)-2.
For more information about the prohibition against repeated or continuous
telephone calls or conversations, see Section 7 in the Debt Collection Small
Entity Compliance Guide . For more information about the presumptions related to
telephone call frequency, see Debt Collection Telephone Call Frequency:
Presumptions Question 1.
Updated October 1, 2021
3. If a debt collector places a payment reminder call that exceeds the telephone
call frequencies, can the debt collector rebut the presumption of a violation?
Show Hide
It depends. A payment reminder call that exceeds either the “call frequency
prong” or the “conversation frequency prong” of the presumptions related to call
frequency discussed in Debt Collection Call Frequency: Presumptions Question 1,
is presumed to violate the prohibition against repeated or continuous telephone
calls or conversations. However, a debt collector could try to rebut the
presumption of a violation by showing through evidence that it placed the
payment reminder call to alert the consumer about a demonstrably negative effect
relating to the collection of the particular debt that was not within the debt
collector’s control, such as a late fee that only the creditor may waive, and
that time was of the essence. Comment 14(b)(2)(ii)-2.iv.B. See Debt Collection
Telephone Call Frequency: Rebutting the Presumptions Question 2 for more
information about the “consumer benefit calls” factor.
For more information about the prohibition against repeated or continuous
telephone calls or conversations, see Section 7 in the Debt Collection Small
Entity Compliance Guide . For more information about the presumptions related to
telephone call frequency, see Debt Collection Telephone Call Frequency:
Presumptions Question 1. For more information about calls that are excluded from
the telephone call frequencies, see Debt Collection Telephone Call Frequency:
Excluded Calls Question 1.
Updated October 1, 2021
4. If a debt collector places a telephone call in response to a consumer inquiry
about resolving the consumer’s debt, and the debt collector’s call exceeds the
telephone call frequencies, can the debt collector rebut the presumption of a
violation? Show Hide
It depends. Assuming the debt collector’s return telephone call is not an
excluded call as discussed in Debt Collection Telephone Call Frequency: Excluded
Calls Question 1 and 5, a debt collector’s return telephone call in response to
a consumer inquiry that exceeds either the “call frequency prong” or the
“conversation frequency prong” of the presumptions related to call frequency,
discussed in Debt Collection Call Frequency: Presumptions Question 1, is
presumed to violate the prohibition against repeated or continuous telephone
calls or conversations. However, a debt collector could try to rebut the
presumption of a violation by showing that it placed the call in response to the
consumer’s request for additional information. Comment 14(b)(2)(ii)-2.iii. See
Debt Collection Telephone Call Frequency: Rebutting the Presumptions Question 2
for more information about the “consumer response calls” factor.
For more information about the prohibition against repeated or continuous
telephone calls or conversations, see Section 7 in the Debt Collection Small
Entity Compliance Guide . For more information about the presumptions related to
telephone call frequency, see Debt Collection Telephone Call Frequency:
Presumptions Question 1. For more information about calls that are excluded from
the telephone call frequencies, see Debt Collection Telephone Call Frequency:
Excluded Calls Question 1.
Updated October 1, 2021
VALIDATION INFORMATION
1. What validation information is a debt collector required to provide a
consumer who owes or allegedly owes a debt? Show Hide
Generally, the Debt Collection Rule requires a debt collector to provide a
consumer who owes, or allegedly owes, a debt five categories of validation
information:
* Debt Collector Communication Disclosure (12 CFR § 1006.34(c)(1));
* Debt-Related Information (12 CFR § 1006.34(c)(2)(i)-(v); 34(c)(2)(ix));
* Itemization-Related Information (12 CFR § 1006.34(c)(2)(vi)-(viii));
* Information about Consumer Protections (12 CFR § 1006.34(c)(3)); and
* Consumer-Response Information (12 CFR § 1006.34(c)(4)).
A model validation notice that provides one way to comply with these content
requirements is provided in Appendix B to the Rule. Use of this model validation
notice provides a safe harbor for compliance with these content requirements (as
well as compliance with the format requirements).
The content requirements above, as well as the timing and format requirements
for the validation information, are discussed in Section 12 of the Debt
Collection Small Entity Compliance Guide . The Debt Collection: Disclosing the
Model Validation Notice Itemization Table guidance document also provides
further guidance on disclosing some of this required content, focusing on how to
disclose the validation information included in the “Itemization Table” on the
model validation notice (i.e., the itemization date; the amount of the debt on
the itemization date; an itemization of the current amount of the debt
reflecting interest, fees, payments, and credits since the itemization date; and
the current amount of the debt).
Updated October 29, 2021
2. Is there a model validation notice in the Rule? Show Hide
Yes. Appendix B of the Rule includes a model validation notice. A copy of the
model validation notice, as well as a Spanish translation of that notice, is
available on the Bureau’s website here. Additionally, editable formats of the
model validation notice are available on the Debt Collection Rule’s GitHub page
.
If a debt collector uses the model validation notice in compliance with the
Rule, the debt collector will receive a safe harbor for compliance with the
validation information content and format requirements. 12 CFR § 1006.34(d)(2);
see also 12 CFR § 1006.34(c) and 34(d)(1). Further, the Rule provides specified
variations (such as format options allowing certain content on a separate page),
prescribes optional content that may be added to the model validation notice,
and generally permits changes, provided that the notice remains substantially
similar to the model validation notice. 12 CFR § 1006.34(d)(2); 34(d)(3); and
34(d)(4). A debt collector may make these changes on the model validation notice
and retain the safe harbor for the validation information content and format
requirements received through use of the model validation notice.
Generally, the validation information content and format safe harbor does not
apply to other provisions of the Rule or the FDCPA. For example, when a debt
collector obtains the safe harbor for the content and format requirements, if
the debt collector discloses an incorrect amount in the model validation notice,
the debt collector violates the prohibition against providing false or
misleading information. However, other safe harbors may be obtained by using the
model validation notice, such as the overshadowing provision safe harbor. 12 CFR
§ 1006.38(b)(2). More information about the Rule’s model validation notice and
the safe harbor provisions is discussed in Section 12.1.3 of the Debt Collection
Small Entity Compliance Guide and in Debt Collection Validation Information
Question 4, below.
Updated October 29, 2021
3. Is use of the model validation notice required? Show Hide
No. The Debt Collection Rule does not require a debt collector to use the model
validation notice provided in Appendix B of the Rule. Instead, the Rule requires
compliance with the validation information content and format requirements in
Regulation F. 12 CFR § 1006.34(d)(2); see also 12 CFR § 1006.34(c) and 34(d)(1).
The model validation notice provides one way to comply with those requirements.
There are other ways to comply with the Rule’s validation information content
and format requirements. A debt collector may choose to format a validation
notice differently than the model validation notice. For example, the Rule does
not require a tabular format for the Itemization-Related Information, and other
layouts or formats may comply with the Rule. However, if a debt collector makes
changes to the content or format of the model validation notice such that the
notice is not substantially similar to the model validation notice, the debt
collector generally will not obtain the Rule’s safe harbor for the validation
information content and format requirements. 12 CFR § 1006.34(d)(2); see also 12
CFR § 1006.34(c) and 34(d)(1). For more information on the Rule’s validation
information content and format requirements, see Section 12 of the Debt
Collection Small Entity Compliance Guide and Debt Collection Validation
Information Question 4, below.
Updated October 29, 2021
4. Can a debt collector make changes to the model validation notice and still
obtain a safe harbor for the validation information content and format
requirements? Show Hide
Yes, but with limitations. To retain the validation information content and
format safe harbor for use of the model validation notice, the debt collector
may only add or omit the optional content described in the Rule, make certain
changes specified in the Rule (e.g., provide certain content on a separate
page), or make changes that leave the notice “substantially similar” to the
model validation notice. 12 CFR § 1006.34(d)(2); 34(d)(3); and 34(d)(4). For
example, the Rule identifies adding the date the notice was generated as one
possible permissible change that allows the debt collector to retain the safe
harbor because the resulting notice remains substantially similar to the model
notice. Comment 1006.34(d)(2)(iii)-1.iv.
A debt collector who chooses not to use the model validation notice, or who
makes changes that are not specified in the Rule and that result in a notice
that is not “substantially similar” to the model validation notice does not
necessarily violate the Rule, but will not receive a safe harbor for the
validation information content and format requirements. 12 CFR § 1006.34(d)(2);
see also 12 CFR § 1006.34(c) and 34(d)(1). For example, a debt collector may
choose to add content that is not required by the Rule and is not enumerated in
the optional content provisions. The Rule would not necessarily prohibit that
additional content, as long as the other requirements and prohibitions in the
Rule and the FDCPA are met, such as the prohibition against overshadowing the
consumer’s rights to dispute or request original-creditor information. However,
if that change results in a notice that is not substantially similar to the
model validation notice, the debt collector would not receive the validation
information content and format safe harbor.
More information about the validation information content and format
requirements, as well as the requirements for the model validation notice safe
harbor and the optional content permitted for the safe harbor, can be found in
Section 12 of the Debt Collection Rule Small Entity Compliance Guide .
Updated October 29, 2021
VALIDATION INFORMATION: RESIDENTIAL MORTGAGE DEBT
1. Is there a special rule for residential mortgage debt that may be used when
disclosing the required validation Itemization-Related Information? Show Hide
As noted in Debt Collection Validation Information Question 1, the Debt
Collection Rule generally requires debt collectors to provide information to
help consumers identify debts. As discussed in that question, this information
includes the Itemization-Related Information, i.e., the itemization date; the
amount of the debt on the itemization date; and an itemization of the interest,
fees, payments; and credits since the itemization date. 12 CFR §
1006.34(c)(2)(vi)-(viii).
However, a debt collector need not provide the Itemization-Related Information
in a validation notice if the debt collector follows a special rule for certain
residential mortgage debt (the “Mortgage Special Rule” or “Special Rule”) that
is provided in the Debt Collection Rule. 12 CFR § 1006.34(c)(5). Under the
Special Rule, the debt collector may provide a required periodic statement as a
substitute for the Itemization-Related Information. 12 CFR § 1006.34(c)(5). More
information about the validation information that may be omitted and substituted
with the periodic statement under the Special Rule is discussed in Debt
Collection Validation Information: Residential Mortgage Debt Question 3, below.
For the debt to be covered by the Special Rule, the following must be true:
* The residential mortgage debt must be a mortgage loan as defined in
Regulation Z, 12 CFR § 1026.41(a)(1); and
* The debt must be subject to the Mortgage Servicing Rule’s periodic statement
requirements (Regulation Z, 12 CFR § 1026.41) at the time the debt collector
provides the validation notice.
If the debt is covered and a debt collector chooses to use the Special Rule, the
debt collector must do the following:
* Provide a copy of the most recent periodic statement required under
Regulation Z, 12 CFR § 1026.41, that was provided to the consumer. This may
be a statement provided by a “debt collector” under the Rule (as long as that
periodic statement was required by Regulation Z, 12 CFR § 1026.41 at the time
the debt collector provided it). 12 CFR § 1006.34(c)(5)(i).
* Include this periodic statement in the same communication as the validation
notice. 12 CFR § 1006.34(c)(5)(i).
* In the space on the validation notice where a debt collector would have
provided the omitted Itemization-Related Information, provide a statement
that refers the consumer to the periodic statement. For example, if a debt
collector is using the model validation notice, this statement would go in
the Itemization Table where the Itemization-Related Information was omitted.
A debt collector would satisfy the requirement to provide a statement that
refers the consumer to the periodic statement by, for example, including the
statement, “See the enclosed periodic statement for an itemization of the
debt.” 12 CFR § 1006.34(c)(5)(ii); Comment 34(c)(5)-1. See the Debt
Collection: Disclosing the Model Validation Notice Itemization Table guidance
document for an example of one way to comply with the Special Rule.
For more information about what validation information may be omitted under the
Special Rule, see Debt Collection Validation Information: Residential Mortgage
Debt Question 2, below.
Updated October 29, 2021
2. What validation information may be omitted if using the Mortgage Special
Rule? Show Hide
If the residential mortgage debt is covered by the Mortgage Special Rule, a debt
collector who uses the Special Rule may omit the following from the validation
notice:
* the itemization date (12 CFR § 1006.34(c)(2)(vi));
* the amount of the debt as of the itemization date (12 CFR §
1006.34(c)(2)(vii)); and
* the itemization of the current amount of the debt (i.e., the interest, fees,
payments, and credits since the itemization date) (12 CFR §
1006.34(c)(2)(viii)).
12 CFR § 1006.34(c)(5).
No other required validation information may be omitted under the Special Rule.
As a result, even though, under the Special Rule, no itemization date is
required to be disclosed on the validation notice, a debt collector who uses the
Special Rule must still determine the itemization date so that the other
validation information tied to the itemization date may be disclosed. This
includes the name of the creditor to whom the debt was owed on the itemization
date and the account number, if any, associated with the debt on the itemization
date. 12 CFR § 1006.34(c)(2)(iii) and (iv). More information about determining
the itemization date when using the Special Rule is included below in Debt
Collection Validation Information: Residential Mortgage Debt Question 5.
Note that while the Itemization Table on the model validation notice includes
the validation information that may be omitted, it also includes the current
amount of the debt, which is validation information that may not be omitted from
the validation notice under the Special Rule. 12 CFR § 1006.34(c)(2)(ix) and
34(c)(5). A debt collector who uses the Special Rule must still disclose the
current amount of the debt on the validation notice.
For more information on using the model validation notice, including how to
obtain a safe harbor while also using the Special Rule, see Debt Collection
Validation Information: Residential Mortgage Debt Question 3, below.
Updated October 29, 2021
3. If a debt collector uses the Mortgage Special Rule with the model validation
notice, can the debt collector obtain the safe harbor for validation information
content and format requirements? Show Hide
Generally, yes. A debt collector who uses the model validation notice but also
complies with the Mortgage Special Rule may still receive a safe harbor for
compliance with the validation information content and format requirements for
the information provided in the model validation notice if it complies with the
requirements in the safe harbor provision. 12 CFR § 1006.34(d)(2); see also 12
CFR § 1006.34(c) and 34(d)(1).
However, the debt collector does not receive a safe harbor for the content and
format requirements for the content included in the periodic statement. 12 CFR §
1006.34(d)(2)(ii). Further, a debt collector who does not correctly comply with
the Special Rule may violate the Debt Collection Rule.
For more information about the Rule’s safe harbor for use of the model
validation notice, see Section 12.1.3 of the Debt Collection Small Entity
Compliance Guide .
Updated October 29, 2021
4. What is the most recent periodic statement for purposes of the Mortgage
Special Rule? Show Hide
For purposes of the Mortgage Special Rule, the most recent periodic statement is
the periodic statement required under Regulation Z, 12 CFR § 1026.41, that was
most recently provided to the consumer. The most recent periodic statement for
purposes of the Special Rule may be one that is provided by a debt collector
(who is not a creditor), as long as that periodic statement was required by
Regulation Z, 12 CFR § 1026.41, at the time it was provided. 12 CFR §
1006.34(c)(5).
For example, assume the servicing of a mortgage account was transferred to a
mortgage servicer who is also a debt collector (as defined in the Rule) and who
plans to use the Special Rule when providing the validation information. A
periodic statement (required by Regulation Z, 12 CFR § 1026.41) provided to the
consumer by that debt collector after the transfer of servicing can be the most
recent periodic statement for purposes of the Special Rule, if it was the last
periodic statement provided to the consumer.
Updated October 29, 2021
5. Does a debt collector using the Mortgage Special Rule use the date of the
most recent periodic statement as the itemization date for purposes of
disclosing other validation information? Show Hide
Yes. A debt collector using the Mortgage Special Rule uses the date of the
periodic statement provided under that Special Rule as the itemization date.
As discussed in Debt Collection Validation Information: Residential Mortgage
Debt Question 2, above, when a debt collector uses the Special Rule, the debt
collector may omit the Itemization-Related Information, but will still need to
include other required content tied to the itemization date on the validation
notice. 12 CFR § 1006.34(c)(5). As a result, the debt collector will still be
required to determine the itemization date for purposes of determining that
other validation information, if it is applicable.
The date used must be the date of the most recent periodic statement that is
provided to the consumer under the Special Rule. How to determine which periodic
statement is the most recent periodic statement under the Special Rule is
discussed in Debt Collection Validation Information: Residential Mortgage Debt
Question 4. A debt collector must use the date of the most recent periodic
statement even if that statement was provided by a debt collector that is not
also a creditor. Use of a statement provided by a debt collector (that is not
also a creditor) for purposes of the itemization date is only permissible under
the Special Rule.
For more information about the itemization date requirements, see Section 12.1.1
of the Debt Collection Small Entity Compliance Guide and the Debt Collection:
Disclosing the Model Validation Notice Itemization Table document.
Updated October 29, 2021
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