Student, Medical Debt Vex Collections Firms Under Consumer Rules

Debt collection firms are running into outdated billing procedures, particularly in student loans and medical debt, as they look to revamp their consumer communication practices as required by new federal rules.

Starting Nov. 30, the Consumer Financial Protection Bureau’s rules, the first federal regulations for the industry, require debt collectors to provide consumers with a clear description of the amount of money they allegedly owe and whom they owe, among a host of other changes.

Collections agencies rely on their clients—credit card companies, banks, student lenders, utilities, hospitals, medical providers, debt buyers and others—to provide the information that goes ...