The much-anticipated changes in Regulation F have come into effect on November 30, 2021. These new set of rules will govern the Fair Debt Collections Practices Act (FDCPA). Regulation F is the first regulation to implement substantive provisions of the FDCPA since the law was enacted in 1977. Apart from regulating third-party debt collectors, Regulation F has several implications for creditors as well.
However, as stated by industry experts FDCPA Regulation F brings about a sea change in the way collection agencies and firms have been operating, communicating with clients and internally. It mandates the organizations to enforce a rigorous set of rules while collecting debt and communicating with the consumers. Consequently, the need of the hour is for debt collection agencies and firms to promptly adopt a solution that can help tackle such changes and avoid risks of Regulation F non-compliance.
At AgreeYa, we have been keenly following the progression of Regulation F from its recommendation stage to its final enactment. Cogent experts have been working hard over the past few months to introduce Regulation F-focused enhancements in Cogent. Such changes, we believe will enable our users to comply with the new requirements brought about by the new regulation. The updated version of Cogent will be rolling out by 30th November.
Cogent Features & Regulation F Compliance
Come November 30, every organization in the debt collection and accounts receivable space will have to comply with FDCPA’s Regulation F. We have added some exciting features to automate and adjust to various changes. The features include:
- Manage Action Result Code: Regulation F restricts collectors from making contact attempts more than seven times in seven days. Towards this, a new checkbox has been added on the Manage Action Result Code screen to identify the activities that are considered as contact attempted.
- FDCPA Alerts: New warnings have been added to FDCPA warning pop-ups. These will alert the collectors when their actions are breaching the Regulation F rules of communication.
- Phone and text message consent: New data fields have been introduced to store the consents related to communication via phone or text message. This feature enables organizations to scan through a list of consumers who have permitted to collectors call them or communicate via text messages.
- Email consent Update: New data field has been introduced to store the consents related to communication via emails. The data is stored safely whenever the consumer permits the collectors to communicate with them via email.
- Balance itemization: Regulation F mandates firms and agencies to include balance itemization at specific dates in their validation letters to consumers, Cogent will allow organizations to store balance itemization on different itemization dates which can be pulled based on the letter based on the organization’s priority.
At AgreeYa, we have always remained vigilant to the changing industry landscape and keep improving Cogent to help organizations better manage, automate and comply with the rules. Many leaders in the debt collection industry will be upgrading Cogent to prepare for the upcoming Regulation F
We would recommend our users to check with their clients to see if they require any further interface changes. Let us know about these requirements and we can schedule a call accordingly. If you are a debt collection agency or firm on the lookout for a robust and versatile solution to manage Regulation F, then please contact us