CFPB, Federal Agencies, State Agencies, and Attorneys General
Some people just don’t like change. New developments are often opposed by small groups prioritizing their own self-interest over the interests of the community at large. In real estate, these groups are sometimes known as “NIMBYs,” short for their rallying cry: “Not in My Backyard!” Well, it looks like debt collectors may have some NIMBYs of their own.
The Development
When the Fair Debt Collection Practices Act (FDCPA) was passed in 1977, the most common ways for debt collectors to reach consumers were through phone calls, letters, and telegrams. It took 44 years for the law to catch up to modern technology, but the CFPB finally did it in 2021 with Regulation F’s guidelines for FDCPA-compliant electronic communications like email and text messages. Here are some of the key takeaways:
For a complete review of all rules related to electronic communications, check out these resources on the CFPB’s website: Regulation F, FAQs, and Small Entity Compliance Guide.
This long-overdue update was hardly revolutionary; it simply gave debt collectors permission to use the same modes of communication that most businesses use to interact with consumers – options that are increasingly popular with consumers who want to “go green” or enjoy the freedom of doing things “on demand” whenever, wherever, and however they choose.
The Opposition
Now, NIMBY litigators, legislators, and even private companies are lining up to protest, trying to limit or block debt collectors from using these options even if it’s what the consumer wants.
Two very different emails, two very similar complaints. Yet it’s difficult to see why these emails are a problem. Both notices are consistent with the CFPB’s guidance (outlined above). They also look just like the opt out/unsubscribe links consumers are used to seeing in emails from their favorite retail stores, social media platforms, banks, and other services.
Creditors and servicers should pay attention because these same rules may also apply to you! In addition to the TCPA and DC law mentioned above, other states – like California and Maryland – already have laws that require creditors and servicers to comply with the FDCPA (and Regulation F) even if they are passively accepting payments on pre-default debt.
Community Impact
Such policies may be based on good-intentions but they have the potential to do real harm by taking away choices that would actually improve accessibility. Some consumers may prefer phone calls and letters, but that doesn’t work for everyone. For example, phone calls and letters may be embarrassing for people with families or roommates. Some people do not have their own phone but they can check their email at a public library. Others may miss letters because they have unstable living arrangements, travel frequently, or have multiple addresses because they’re a seasonal resident (aka “snow bird”). Email and text messages would allow all of them to stay informed no matter where they go. These consumers have the same rights and deserve the same quality of service as everyone else.
Many consumers have developed a taste for on-demand services that adapt to their preferences and behavior. While most industries have evolved, debt collectors have been held back by rules that are increasingly out-of-touch with society’s expectations for user-friendly experiences. In fact, electronic communications like email and text are particularly convenient ways for businesses and consumers to interact quickly, quietly, and on-demand. Many consumers prefer these options to the disruption of a ringing phone or the delay of exchanging letters by mail. Electronic communications are generally more private and respectful of a consumer’s valuable time. They deliver the same important information in a concise format that’s easy to retain for future review with a continuous history of conversations saved all-together in one place. The ability to share hyperlinks, images, audio, video, and attachments can also help streamline services for faster results.
Most importantly: If a consumer does not like these options, it’s incredibly easy to opt out!
In the end, it all comes down to giving consumers the freedom to make their own choices about when, where, and how they want to communicate with debt collectors – even if it’s sending an email or text message from the privacy and comfort of their own backyard.

Consumer Finance Monitor Podcast
by the Consumer Financial Services Group at Ballard Spahr LLP

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