Impacts on Creditors Servicers Preparing for Uncertain Future CFPB Debt Collection Working Session 7
Although there is considerable uncertainty about what the future holds for the CFPB’s Debt Collection Final Rule, it is still currently set to become effective on November 30, 2021. This has caused many in the industry to wonder what should be done while we wait for answers.
Join us to learn more about the current status of the Debt Collection Final Rule, and what steps you might consider taking now. We will also discuss in detail important considerations and potential impacts from the final rule on first-party creditors and specific impacts for mortgage and other consumer loan servicers.
Whether you are a third-party debt collector who is curious about what the CFPB might do with respect to the final rule, a creditor who is trying to establish best practices and understand how the rule might impact your business, or a consumer loan servicer that knows there might be some unique challenges, learn more about the CFPB’s Debt Collection Final Rule.
- On April 7, 2021, the CFPB proposed to postpone the effective date of the debt collection rules for 60 days. The CFPB did not indicate that it is contemplating making substantive changes to the rule before that new proposed effective date.
- The final rules technically do not apply to first-party creditors, but there is still substantial risk for those entities so they should carefully analyze the rules and determine how it may impact their businesses.
- California’s Rosenthal Fair Debt Collection Practices Act heightens the risk for entities that collect debts but otherwise would not be subject to the FDCPA because it incorporates the FDCPA and applies to those entities.
- Consumer loan servicers are put in a particularly challenging position with respect to certain rules, such as the cease communication restrictions and call frequency limitations.
- Anyone who may be impacted by the CFPB’s debt collection rules should be moving forward with implementation efforts given the complexity of the final rules.