Switching from physical letters to digital notifications will significantly reduce paper and postage costs for law firms and businesses required to send Initial Demand Letter (IDL) or validation notice to recovering delinquent funds—but it’s not as easy as copying the sample model validation notice in an email.
While, yes, organizations can send these validation notices via email and still be fully compliant, there are several other common questions that are important to cover for your business or law firm to confidently make the transition to sending this required communication electronically.
Let’s look at some of the frequently asked questions about sending electronic validation notices (EVNs), starting with one we already briefly touched on:
Can a debt collector send the Model Validation Notice by email?
Yes!
- If delivering MVN electronically:
- Prompts may be displayed electronically or as a fillable field
- Hyperlinks may be embedded so that when clicked, they connect to the debt collector’s/CFPB’s website
- Best practice is to permit a consumer to respond to the dispute information prompts via hyperlink
- Easy way to opt-out provided, such as an opt-out hyperlink
- Electronic Formatting Considerations:
- Viewed by computer
- Viewed by cell phone
What are some of the consent requirements in Regulation F?
- E-Sign consent is not required when the validation notice is the initial communication and it is delivered by email
- Any time an initial communication does not contain the validation notice, you must obtain E-Sign consent when sending the validation notice electronically within 5 days of the initial communication
- Any time a consumer requests the verification and/or name and address of the original creditor, you must obtain E-Sign consent to send the information electronically
What is the Regulation F Email Safe Harbor?
- Debt collector obtains email directly from consumer
- Creditor got email from consumer, used it to email without opt-out, sends warm transfer opt-out, no opt-out in 35 days, and email address has public domain name.
- Prior collector got email from consumer, or from opt-out in #2.
Are there any other special requirements to send required disclosures electronically?
- This includes three key things:
- Monitoring deliverability,
- Sending the email from your domain, and
- Including two pieces of account information in the subject line (information to help the consumer recognize the matter, but it cannot include amount of the debt).
What makes sending EVNs through Retain by TrueML Products so effective?
- Cost Reduction: Businesses can mitigate the financial burden associated with physical mailings by leveraging Retain’s digital platform.
- Automation: Retain automates the delivery process of EVNs, expediting consumer engagement and alleviating the need for manual interjections.
- Scalability: Accommodating organizations of all sizes, Retain’s scalable architecture offers a versatile solution tailored to individual needs in real time.
- Deliverability: With a deliverability rate of 87%, Retain can help ensure your EVNs make it to your recipients and give you the best chance at productive engagement in debt recovery.