The CFPB's Final Collections Rule: Using Electronic Communications To Send Required Disclosures

One of the initial promises of the CFPB's NPRM was a level of certainty as to the use of electronic communications to provide legally-required collection disclosures to consumers. In adopting the final rules, however, the CFPB left this promise unfilled by creating different standards for different types of disclosures.

Electronic Delivery of Disclosures Related to Validation, Original Creditor Information Requests, or Consumer Disputes.

The NPRM initially clarified that the E-SIGN Act's consumer-consent requirements generally apply to the electronic delivery of validation notices, original creditor information request responses and dispute responses. It specifically proposed two approaches to electronic delivery of such notices: a debtor collector could (1) obtain an E-SIGN Act-compliant consent (an "E-SIGN Consent") directly from the consumer; or (2) comply with certain alternative procedures that would allow the collector to rely on a creditor's previously