On October 30, 2020, the Consumer Financial Protection Bureau (CFPB) finalized its long-awaited debt collection rule. The 653-page final rule addresses consumer communication, consumer disclosures, record retention, requirements related to the sale or transfer of debts, and communications with a deceased debtor’s estate. The rule will become effective one year after publication in the Federal Register. While this rule is a significant step, the CFPB indicated that it is not yet done with its debt collection related rulemaking and intends to issue a “disclosure-focused” rule in December 2020. The disclosure-focused rule will clarify certain disclosure obligations, consumer reporting obligations, and the collection of time-barred debt.
Bradley is currently reviewing the final rule and plans to discuss various aspects of the rule in a series of upcoming blog posts and webinars. Bradley attorneys will host the first of these webinars titled “Introduction to the CFPB’s Debt Collection Final Rule” on November 5 from 1-2 p.m. EST.