Page 25 - ARUBA TODAY

BUSINESS Wednesday 5 June 2019
A25

On the Money: How new rules for debt collectors affect you

NEW YORK (AP) — The next Americans have landline
text message you receive telephones, and they
may not be a funny pic- speak on the phone less
ture from your mom, or an frequently than 10 years
update on how late your ago. Texting and email
friend will be to brunch. have become more com-
It could be a debt collec- mon ways of communicat-
tor. ing with friends or family.
The Consumer Financial The debt collection indus-
Protection Bureau has pro- try has long used email and
posed new rules to govern texting to reach borrow-
how third-party debt col- ers, but the industry says it
lectors contact borrowers. was operating in a legal
The rules are expected to gray area. It isn't illegal for
accelerate the industry's a debt collector to text or
switch from insistent phone email you presently, it just
calls to emails and texts. wasn't as clearly defined as
Under the new rules, the rules for phone calls or
third-party debt collec- letters.
tors would only be able "Using email or text mes-
to call a delinquent bor- sages was 'use at your own
rower seven times a week risk,'" said Mark Neeb, chief
— currently they can call executive of ACA Interna-
as often as they want. And tional, the lobby group for
once they reach a borrow- In this June 6, 2017, file photo a man checks his phone in an alley in downtown Chicago. the debt collection indus-
er by phone, they'll have Associated Press try.
to leave them alone for at TrueAccord is one Califor-
least a week. sages without getting bor- social media accounts. eral Trade Commission. The nia-based debt collector
The CFPB is proposing no rowers to agree to them," Americans have little love rules proposed by the CFPB that has focused almost
cap on the number of texts said April Kuehnhoff, a staff lost for the debt collection impact only what's known all of its efforts on reaching
or emails a collector could attorney with the National industry. Roughly 25 million as the third-party debt col- debtors through email or
send. This has drawn the ire Consumer Law Center. Americans have debts in lection industry - those who other forms of digital com-
of the consumer advocacy The CFPB has pushed back collections, according to typically buy old debts at munication.
groups who say it opens the on the criticism, saying the the Federal Reserve. pennies on the dollar or "(The CFPB's proposals) are
door to allowing debt col- rules require giving borrow- The CFPB received more are contracted by another a vindication of our busi-
lectors to use text messag- ers an opt-out from bill col- than 80,000 complaints lender like a bank to col- ness model," said Ohad
ing, WhatsApp, Facebook lectors' texts and emails. about debt collectors last lect on an old debt. Samet, CEO of TrueAccord.
Messenger or other text- Debt collectors will also be year, and the industry typi- The changes the CFPB has As debt collectors rely more
based messaging services. banned from posting pub- cally ranks high in com- proposed are a reflec- on email and texting, ex-
"Collectors will be able to lic messages on a person's plaints to other federal and tion of how many Ameri- pect phone calls to wane
use these types of mes- Twitter, Facebook or other state agencies like the Fed- cans communicate. Fewer in use. q

Australia cuts key interest rate to record low 1.25%

By ROD McGUIRK boon for borrowers and creased since November
Associated Press can help stimulate more 2010 when it rose 0.25% to
MELBOURNE, Australia (AP) business activity. 4.75%.
— Australia's central back "The board took this deci- Treasurer Josh Frydenberg
on cut its benchmark inter- sion to support employ- met with chief executives
est rate Tuesday by a quar- ment growth and provide of Australia's major banks in
ter of a percentage point to greater confidence that recent days to urge them
a new record low of 1.25% inflation will be consistent to pass on the full value of
in the first rate change in al- with the medium-term tar- any rate cut to borrowers.
most three years. get," the bank said in a "I expect all banks to pass
The change was widely ex- statement. on the benefits of sustained
pected after Reserve Bank It said the outlook for the reductions in funding costs,"
of Australia Governor Philip global economy "remains Frydeneberg told The Syd-
Lowe said two weeks ago reasonable," but risks stem- ney Morning Herald news-
that inflation was likely to ming from trade disputes paper.
remain below the bank's are growing. The reduction is expected In this May 7, 2019, photo, the Reserve Bank of Australia building
target range of 2% to 3% a "Growth in international to boost Australia's flagging in Sydney.
year and that a decrease trade remains weak and housing market, increase Associated Press
in the cash rate would likely the increased uncertainty is exports by reducing the
be appropriate. affecting investment inten- value of the Australian cur- 4.9%. without a recession. The
The bank's board moves tions in a number of coun- rency and create jobs. The Australian economy country has not suffered
interest rates at monthly tries, it said. Lowe said in a speech two is suffering from the end a recession — defined as
meetings to keep inflation The cash rate last moved weeks ago that Australia of a mining boom, largely two consecutive quarters
within the target range. In- in August 2016 when it was had to "do better" than the to supply China, that car- of economic contraction
flation is currently running reduced by 0.25% to 1.5%. current jobless rate of 5.2%, ried the country through — since the June quarter of
at 1.3%. Lower rates are a The rate has not been in- which had increased from the global economic crisis 1991.q