On 4/7/21, the CFPB announced a proposal to delay the effective date of two recent debt collection rules from 11/30/21 to 1/29/22. In their release, the CFPB explains that the proposed delay would allow stakeholders affected by the pandemic additional time to review and implement the rules.
The first debt collection rule, issued in October 2020, focuses on the use of communications related to debt collection, and clarifies prohibitions on harassment and abuse, false or misleading representations, and unfair practices by debt collectors when collecting consumer debt.
The second debt collection rule, issued in December 2020, clarifies disclosures debt collectors must provide to consumers at the beginning of collection communications. The rule also prohibits debt collectors from making threats to sue, or from suing, consumers on time-barred debt. The rule requires debt collectors to take specific steps to disclose the existence of a debt to consumers before reporting information about the debt to a consumer reporting agency.
The proposed rule can be found here.
