The CFPB issued its long-awaited final debt collection rule today.  The final rule is adopted pursuant to the Bureau’s authority under the Fair Debt Collection Practices Act and not its UDAAP authority under the Dodd-Frank Act.  Accordingly, the final rule only 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.  The final rule is effective one year after its publication in the Federal Register.

The final rule and commentary, together with the supplementary information, runs 653 pages.  Once we have read the issuance, we will share our thoughts on the rulemaking in subsequent blog posts.

On November 13, 2020, from 12 p.m. to 1:00 p.m. ET, Ballard Spahr attorneys will hold a webinar, “The CFPB’s Final Collection Rules– What’s In, What’s Out, and Where To Go From Here?”  For more information and to register, click here.

The final rule issued today does not represent the completion of the Bureau’s debt collection rulemaking.  In February 2020, the Bureau supplemented its proposed debt collection rule with a proposal that would require debt collectors to make specified disclosures when collecting time-barred debts.  In its summary of the final rule issued today, the Bureau 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.