Temporary legislation signed by Washington, D.C. Mayor Muriel Bowser takes effect on September 23, 2021, and makes significant changes to debt collection practices in the Capital. Key elements of the law include:
 
  • Collectors are limited to making no more than 3 phone calls in any 7-day period, but excludes inbound calls by the consumer or calls in response to a consumer’s request for a returned call.
  • Collectors must possess “complete and authenticated documentation” of the account, including a copy of the signed contract, application, or other evidence of the consumer’s liability and the terms applicable to the debt, and an itemized accounting of the amount claimed to be owed, including: (1) the principal, (2) interest, fees or charges, and (3) whether the charges were imposed by the original creditor, the debt buyer or a debt collector.
  • In their first written communication, collectors must disclose that the consumer may request the above documentation, and detail each piece of information that can be requested and provide a phone number, mailing address, and email address to make the request.
  • A 15-day response timeline for consumers requesting items in the debt verification item list. This applies regardless of whether the request occurred during the validation period. If a collector cannot send the required verification within 15 days, it must cease all collection until it is provided.
  • Font requirements for the new initial notice disclosure (12-point, bold)
  • Payment arrangement confirmation notice within 7 days of the consumer agreeing to a payment schedule or settlement agreement.
  • SOL periods will no longer be extended by payment or written or oral affirmation of the debt after the SOL expires. Once the SOL expires, there will be no revival in DC.
 
Although this legislation is effective on September 23, 2021, be ready for the above changes as a practical matter starting December 8, 2021. Here’s why:
 
The legislation, along with D.C.’s declared public health emergency and subsequent public emergency (both of which severely restrict debt collection “during a public health emergency and for 60 days after its conclusion”) create a patchwork of implementation and expiration dates. The existing public emergency declaration dated July 24, 2021 concludes October 8, 2021, with debt collection restrictions lifting 60 days thereafter, or December 7, 2021. Thus collectors won’t have an opportunity to implement the above changes until December 8, 2021. 
 
This temporary legislation continues in effect for 225 days from September 23, 2021, or until May 6, 2022. It is expected that a permanent law will be enacted before this legislation expires.
 
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