CFPB Debt Collection Regulations Will Go Into Effect On November 30

The CFPB published in the Federal Register the withdrawal of an April 2021 rule proposal that would have delayed the effective date of two final rules on debt collection communications under the Fair Debt Collection Practices Act. The effective date of two final rules remains November 30, 2021.

The first rule, adopted in October 2020, clarifies prohibitions on misleading representations, harassment and abuse, and unfair debt collection practices. The second rule, adopted in December 2020, clarifies disclosure obligations for debt collectors at the beginning of collection communications, as well as prohibited predatory activities.

As previously covered, the CFPB stated the proposed delay was intended to allow additional time to implement the rules in light of the COVID-19 pandemic, but that industry commenters generally stated they would be prepared to comply by November 30, 2021.