Barney Frank Files Bill Exempting Collectors from Liability on Voice Messages

U.S. Rep. Barney Frank (D-Mass.) introduced legislation in the House Tuesday with language that appears to directly address liability issues that arise when debt collectors leave voice messages for consumers concerning a debt.

H.R. 4101, titled the “Fair Debt Collection Practices Clarification Act of 2012,” specifically exempts debt collectors from liability when leaving voice messages. In fact, the bill’s intro – often given as a “purpose” for a bill — reads:

To amend the Fair Debt Collection Practices Act to exempt a debt collector from liability when leaving certain voice mail messages for a consumer with respect to a debt as long as the debt collector follows regulations prescribed by the Bureau of Consumer Financial Protection on the appropriate manner in which to leave such a message, and for other purposes.

The bill appears to put the onus on the Consumer Financial Protection Bureau (CFPB) to come up with language within six months of the bill’s passage that is appropriate for debt collectors to use in a voice mail.

From the bill:

A debt collector may leave messages for a consumer in connection with the collection of a debt on the consumer’s answering machine, voice messaging system, or other similar device, including in an initial communication with the consumer, so long as the message complies with regulations prescribed by the Bureau to ensure the preservation of the privacy and other rights granted to the consumer.

H.R. 4101 also contains a clause that limits a debt collector’s use of arbitration to settle a dispute unless a consumer has agreed to arbitration in writing.

The bill was introduced on February 28 and referred to the House Committee on Financial Services, of which Frank is the ranking Democrat.

We will have much more on the impact of this potential law in the coming days.