Page 11 - aruba-today-20201111

A11
BUSINESS Wednesday 11 november 2020
Millennial Money: What new debt collector rules mean for you

By SEAN PYLES of NerdWal- FREQUENCY OF COMMU-
let NICATION: The update
Working with third-party clarifies the definition of a
debt collectors can be "harassing" frequency of
confusing and scary. For phone calls from collec-
the more than 68 million tors — but this also might
U.S. adults with debt in col- enable such harassment,
lections, knowing their le- advocates warn.
gal rights is crucial. The new rule limits collec-
The Fair Debt Collec- tors to calling no more than
tion Practices Act covers seven times a week per ac-
third-party debt collectors count. It bars calls within
— those who buy a delin- seven days after having a
quent debt from an original conversation with a con-
creditor, like a credit card sumer. But consumers may
company. An update to have multiple accounts in
the rules on how the act collections, leading to a
is applied, announced by barrage of calls.
the Consumer Financial The one contact per day
Protection Bureau in late doesn't cover text, email
October, alters the terms of or social media channels,
engagement. so consumers may be in-
Some changes will modern- In this Oct. 1, 2020 file photo, a woman walks past a personal finance loan office in Franklin, Tenn. undated with messages.
ize the law and clarify how Associated Press The new rules also allow for
it's enacted. But consumer "limited-content messag-
advocates say other revi- important details, includ- messages. The messages tor and you haven't gotten es," which could mean a
sions don't go far enough ing the amount owed, the must explain how the con- the initial notice about the proliferation of voicemails
or could have unintended collection agency's name sumer can restrict contact debt, they should ask for that don't count as "com-
consequences. and how consumers can by these methods or re- that information." munications."
KNOW YOUR RIGHTS dispute the debt. quest no communication. NEW LIMITS ON COLLEC- "We have concerns about
The FDCPA offers several CONSUMER RIGHTS: People Notably, debt collectors TORS' ACTIONS: Additional what this is going to mean
protections, including: can limit how and when a don't need consumers' per- changes are expected especially for consumers
LIMITS ON DEBT COLLEC- collector contacts them, mission before contacting to be announced by the who might, for example,
TOR ACTIONS: Collectors including telling them to them on these new chan- CFPB in December. Those have multiple medical
must be truthful, including stop communicating alto- nels. will govern when collec- debts in collections," Kue-
about details of the debt. gether. In all but limited cir- Consumer advocates wor- tors can add information hnhoff says.
They cannot use abusive cumstances, the collector ry that collectors may send to consumer credit reports What you can do: If you
language, call repeatedly must honor that request. crucial information like the and disclosures about feel you're being con-
in a harassing manner or If consumers doubt the de- debt validation letter to debts, such as whether tacted too frequently, you
threaten violence. tails of a debt, they can email or social media ac- they're past the statute of can demand the collec-
Collectors can't ask for a send the collector a debt counts that aren't in use. limitations, which vary by tor cease communication
post-dated check for them verification letter seeking "What consumers should state and limit how long a in all but a few instances,
to cash later, which is a more information beyond know is it's going to be re- collector can sue a con- such as when legal action
tactic to get consumers to the validation letter. ally important for them to sumer for payment. is threatened. This extends
pay debts they cannot af- UPDATES TO THE FDCPA be proactive to opt out if WHY CONSUMER ADVO- to prohibiting communica-
ford. They also cannot col- RULES they don't want to receive CATES ARE CONCERNED, tion in different channels.
lect more than the amount Here are some of the communications through AND WHAT YOU CAN DO NO COVERAGE OF ORIGI-
owed or threaten to take changes, which are set to text message or email," Some advocates worry NAL CREDITORS
property when that's not al- take effect in fall 2021: says April Kuehnhoff, staff that the updates don't go The kicker with the FDC-
lowed. NEW COMMUNICATION attorney at the National far enough and say some PA is that it only regulates
INFORMATION DISCLO- OPTIONS: Debt collectors Consumer Law Center. of the changes could ac- third-party debt collectors
SURES: Debt collectors must will be able to contact She also notes, "If consum- tually lessen consumer pro- — that is, a collector who
send consumers a "debt consumers by email, text ers start getting communi- tections. Here are two of doesn't represent the origi-
validation letter" outlining message and social media cations from a debt collec- the primary concerns: nal creditor. q

Taiwan processor chip maker to set up $3.5 billion U.S. arm

TAIPEI, Taiwan (AP) — A Taiwanese what functions it will perform. ductor wafer fabrication facility in posed on Chinese companies in a
maker of processor chips for Apple U.S. officials worry their country Camas, Washington, and design feud with Beijing over technology
Inc. and other customers plans to relies too too heavily on factories centers in San Jose, California, and security.
invest $3.5 billion to set up its sec- in Taiwan, South Korea and China and Austin, Texas. TSMC and other global vendors
ond U.S. manufacturing site amid for chips used in smartphones, Last year, the U.S. Government are barred from using U.S. tech-
American concern about relying medical equipment and other Accountability Office said in a re- nology to make chips for Huawei
too heavily on sources in Asia for products. Anxiety increased after port that relying on foreign chip Technologies Ltd., one of the Tai-
high-tech components. the coronavirus pandemic disrupt- producers reduced costs but "can wanese company's biggest cus-
Taiwan Semiconductor Manu- ed global shipping. also make it harder" for the military tomers.
facturing Co., the world's biggest The Wall Street Journal reported to get supplies if governments cut That blocks most manufacturing,
contract producer of semicon- in May that TSMC was talking with off access. including of chips designed by
ductors, said its board on Tuesday Apple, one of its biggest custom- TSMC is among semiconductor Huawei, because their production
approved the plan for the facility ers, about a possible U.S. factory. suppliers whose business has been lines need U.S. technology and
in Arizona. It gave no details of TSMC also operates a semicon- disrupted by U.S. sanctions im- components.q