Newsroom

The CFPB Wednesday issued a proposed rule to delay two Fair Debt Collection Practices Act (FDCPA) rules finalized last year: One related to third-party debt collectors and another on consumer disclosures. The bureau is proposing delaying the rules' effective dates 60 days to allow covered parties more time to comply amid the coronavirus pandemic.

The third-party debt collection rule – finalized at the end of October – does not encompass first-party collectors or creditors. It also clarifies the time, place, and manner restrictions on how a debt collector may communicate with a consumer and finalizes limited content messages, but only for voicemails. Additional details on the rule can be found in NAFCU's Final Regulation Summary.

The bureau addressed consumer disclosures in a separate rulemaking finalized in December. It addresses information that a debt collector must provide to a consumer at the outset of the debt collection communications and provides a model validation notice, addresses consumer protection concerns related to passive collection activities such as furnishing information to a consumer reporting agency, and prohibits collectors from suing or threatening to sue a consumer to collect time-barred debt.

Both rules are currently set to take effect Nov. 30, 2021; the proposal would delay them to Jan. 29, 2022. Debt collectors may chose to comply with the rules before the effective date; however, any safe harbors available in the final rules will not take effect until the proposed effective date.

Comments on the proposed delays are due 30 days after the notice is published in the Federal Register.