On December 18, 2020, the Consumer Financial Protection Bureau (CFPB) released the second part of its final rule, Regulation F, which implements the Fair Debt Collection Practices Act. The first part of the final rule was published on October 30, 2020. The most recent release has three primary components dealing with validation notices, passive debt collection through negative reporting, and the collection of time-barred debt. Most notably, the provisions dealing with time-barred debt depart significantly from the Bureau’s February 21, 2020 proposal. Both parts of the final rules are effective on November 30, 2021.
Regulation F applies to debt collectors. The rules apply directly to financial institutions if the institution is collecting a debt owed to a third party or is collected its own debt, but is using a different name. Failure to follow the rule can result in UDAP violations.
Compliance Resource is conducting a two-hour webinar entitled Implementing the New Fair Debt Collection Practices Act and Regulation F on February 3, 2021.