CFPB PUBLISHES FINAL DEBT COLLECTION PRACTICES ACT RULE

On October 30, 2020. the Consumer Financial Protection Bureau (CFPB) issued a final Regulation F, which governs the activities of debt collectors. The final rule addresses, among other things, communications in connection with debt collection and prohibitions on harassment or abuse, false or misleading representations, and unfair practices in debt collection.
The final rule:

  • Will be effective one year after publication in the Federal Register, which is expected soon.
  • Together with the supplementary information, runs 653 pages.
  • Applies to the activities of debt collectors subject to the FDCPA and does not apply to the activities of creditors who are not FDCPA debt collectors.
  • Does not represent the completion of the CFPB’s debt collection rulemaking.
  • In February 2020, the CFPB supplemented its proposed debt collection rule with a proposal that would require debt collectors to make specified disclosures when collecting time-barred debts.
  • In the final rule, the CFPB indicates that it intends to publish a second “disclosure-focused final rule” in December 2020 that will address time-barred debt, the initial information a collector must provide to consumers, and requirements prior to furnishing consumer reporting information and will include a model validation notice.