Ever since the updated Regulation F went into effect at the end of 2021, debt collectors and creditors have been scrambling to comply.
Consumer communications are a major focus of the new federal rules, including how, how often, when, and in some cases, what collectors must say. Many companies have lacked the customer communications management (CCM) technology and processes to meet the new language, disclosure, and other communications requirements or take advantage of electronic delivery options.
Our collections clients have had a much smoother and faster transition, thanks to Nordis’ patented Expresso® CCM platform and hosted managed services. We worked closely with our clients to update collection letter templates and business rules logic to meet Reg F formatting requirements on Day 1. Companies also could immediately leverage our omnichannel platform to add email and text. As consumer preference for digital communications grows and mail and phone calls become less effective, many collectors and creditors have wanted the right to use electronic channels, now allowable under Reg F.
Our distinctive CCM + E solution bundles communications composition and execution, enabling clients to manage the whole process from a single dashboard. It starts with Expresso, which gives clients the control and flexibility to quickly develop, customize, update and automate debt communications and disclosures or hand off changes for us to make. Nordis also produces and distributes all digital and print communications, including an automated Certified Mail option with direct integration to USPS.
Reg F prioritizes communications
Consumer communications are a major focus of Reg F. The changes are intended to provide clarity to collectors on what they can and cannot do and strengthen consumer protections from abusive practices. As an example: Not only does Reg F detail an expanded list of information that collectors must provide at the outset of debt collection communications, but it goes so far as to include a debt validation notice template, with content and formatting guidelines.
Also, while the federal government now permits electronic communications, there are strict rules on their use. Consumers have the right to opt out of electronic communications and to stop specific communications. Disclosures also have increased.
At some 1,000 pages, the revised Reg F from the Consumer Financial Protection Board is the first major updating and expansion of debt collection requirements since the 1977 Fair Debt Collection Practices Act.
CCM solves debt communications complexity
Reg F introduces a whole new level of complexity in developing, managing and updating communications, disclosures, and delivery channels. To successfully adapt and help avoid fines and other penalties for noncompliance, collectors and creditors need cloud-based omnichannel CCM platforms and especially hosted managed services including print and digital delivery, and flexible document archiving and presentment solutions.
Rather than invest in software and infrastructure requiring a major IT lift, companies can tap cloud capabilities and services that enable them to quickly meet Reg F requirements, cater to consumer communications preferences and increase operational efficiency. Leveraging these platforms, collectors and creditors not only can reach and stay in compliance but also capitalize on digital channels to improve recovery rates.