State Agency Publishes New Rules for Debt Collectors

The Florida Financial Services Commission Tuesday published new rules for debt collection agencies working in the state. The new rules address the proper retention, storage, and destruction of consumer financial information and introduce a new fine system for violations.

The regulations are an update to the existing Final Rules for Debt Collection that governs ARM firm behavior in Florida. New rules go into effect next week on October 25.

DBA International first alerted their members to the final rule changes in an email yesterday. DBA, a leading trade group for debt buyers, said that it worked with Florida regulators on the new rules in cooperation with ACA International, the association for collection agency professionals, and its state unit in the state, the Florida Collectors Association.

DBA noted that it worked with the state on definitions and requirements for collection agencies considered to be debt buyers.

According to the group, the new rules on what types of records collectors are now required to keep include:

• If the debt collector is a debt buyer or is an assignee holding title to the debt, the debt buyer’s or assignee’s bill of sale or other written document executed by the debt buyer or assignee that contains when and from whom the debt was acquired.
• A record of payments made by the debtor, including the date received and the amount and balance owing.
• All form letters and stationery used by a registrant shall be maintained in a file and made available at all times for review by the Office of Financial Regulation.
• Documentation of the debt provided by the creditor.
• The amount of the debt at the time of charge-off or at the time of receipt of the debt by the registrant for purposes of collection and an itemization of all interest, fees, or charges added to it by the registrant.

In addition, the new rules specifically address how long a collection agency must keep the records on file. All documents outlined above must be maintained for “at least 3 years from the date the consumer satisfied the debt being collected or the registrant has ceased collection efforts from the consumer.” After that, collection agencies must have a written procedure in place for the proper disposal of the documents that adheres to state policy and the company must keep records of the destruction that include “which records were destroyed, when were the records destroyed, where were the records destroyed, and who destroyed the records.”

The new rules also included separate documents addressing the state’s complaint procedure and a detailed schedule for fines for violations.

All of the new rules can be found at the state’s site at http://www.flrules.org/gateway/ChapterHome.asp?Chapter=69V-180.