On October 30, 2020, the Consumer Financial Protection Bureau (CFPB or the Bureau) released its long-awaited final debt collection rule, also known as Regulation F. The Bureau completed the rule on December 18, 2020. and both parts were enacted in accordance with the authority of the Bureau under the Fair Debt Collection Practices Act (FDCPA).
On April 7, the CFPB issued a Notice of Proposed Regulatory Proposal (NPRM), which proposed to delay the effective date of the rule by 60 days. However, on July 30, the CFPB issued a press release stating that the effective date will not be delayed.
The CFPB determined that an extension of the effective date was not necessary since most of the public comments did not support it; most industry players have said they will be ready to comply with the rules by the original November 30 deadline. However, the CFPB has expressly stated that its current ruling would not prevent the Bureau from reconsidering the rule later. Thus, the rule, in its entirety, comes into effect on November 30.
Debt collectors and the creditors who use them should conduct a thorough review of their policies to ensure compliance with these new requirements. Troutman Pepper will continue to monitor and report any developments related to this matter.