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How Skit.ai’s Voice AI for Debt Collections Complies with State-level Regulations

Simone Somekh

October 27, 2023

State-level Regulations Are Just as Important as the Federal Ones

Virtually everyone working in the accounts and receivables industry is familiar with Reg F, the law passed in 2021 to update the Fair Debt Collections Practices Act (FDCPA). Reg F provides parameters for call frequency in debt collections; in particular, the 7x7x7 rule, which allows a maximum of 7 calls in a 7-day period, and allows the collector to follow up only 7 days after having had a conversation with the consumer.

However, some states have stricter laws when it comes to the debt collection industry and call frequency.

When training new agents or deploying a new software solution for your collection strategy, it’s important not to forget these state-level regulations, which are just as important as the federal ones.

Examples of State-specific Regulations for Collection Calls

Here are three examples of state-level regulations that limit call frequency permissions further than Reg F.

Massachusetts: According to the Attorney General’s regulations, creditors and collection agencies are allowed to make a maximum of 2 attempts of communication via telephone (calls or text) in a 7 consecutive day period.

New York: New York’s law is similar to Massachusetts’. Also here, collectors are not allowed more than 2 attempts of communication (calls, texts, letters, emails, etc.) in a 7-day period.

North Carolina: Collection agencies are allowed to make only 1 attempt of communication to a particular third party in a 7-day consecutive period to obtain location information.

How Skit.ai’s Compliance Filters Tackle State Regulations

Working with legal and compliance experts, at Skit.ai we’ve compiled the different state-level regulations and have integrated them into our Voice AI solution’s compliance filters.

Our solution identifies the state of the consumer through the zip code of their most recent address and identifies the applicable regulations in real-time during the campaign initiation process. This way, Skit.ai’s solution never dials out a non-compliant call to a consumer.

Want to learn more about how Conversational AI can help you streamline your collection strategy and comply with all regulations? Schedule a call with one of our experts using the chat tool below.


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