The Fair Debt Collection Practices Act (title VIII of the Consumer Credit Protection Act) (15 USC 1692) became law in 1977. Now, after more than 40 years later, big changes have occurred.
- On October 30, 2020, the CFPB issued a final Regulation F, which governs the activities of debt collectors. The final rule:
- Addresses, among other things, communications in connection with debt collection and prohibitions on harassment or abuse, false or misleading representations, and unfair practices in debt collection.
- Will be effective one year after publication in the Federal Register.
- Applies to the activities of debt collectors subject to the FDCPA and does not apply to the activities of creditors who are not FDCPA debt collectors.
- The final rule promised a second “disclosure-focused final rule” in December.
- On December 18, 2020, the CFPB released the second part of Regulation F. The most recent release has three primary components dealing with validation notices, passive debt collection through negative reporting, and the collection of time-barred debt.
- Both parts of the final rules were effective on November 30, 2021.
This program provides a review of both parts of the final rule. Regulation F applies to debt collectors. The rules apply directly to financial institutions if the institution is collecting a debt owed to a third party or is collecting its own debt, but is using a different name. UDAAP and state law make FDCPA principles directly applicable to a financial institutions collecting its own debt. Financial institutions also have vendor management issues that arise when using third-party collectors. Failure to follow the rule when collecting debt in any of these scenarios can result in violations of Regulation F, UDAAP, or state law.
Upon completion of this program participants understand:
- When a financial institution is covered by the Fair Debt Collection Practices Act and Regulation F;
- Prohibitions regarding communication:
- At unusual or inconvenient times or places;
- With a consumer represented by an attorney;
- With a consumer with a consumer at his/her place of employment;
- After a consumer refuses to pay or provides a cease communication notice;
- With third parties;
- Rules regarding acquisition of location information;
- Prohibitions regarding:
- Harassing, Oppressive, or Abusive Conduct;
- False, Deceptive, or Misleading Representations or Means;
- Unfair or Unconscionable Means;
- Collection of Time-Barred Debts;
- Validation Notices;
- Disputes and Requests for Original-Creditor Information;
- Required Disclosures; and
- Electronic Disclosure Options.
The program is designed for senior lending management, collection personnel, loan officers, compliance officers, and auditors. Whether new to the requirements of FDCPA and Regulation F or a seasoned veteran, this program provides a comprehensive review of the revisions.