The Fair Debt Collection Practices Act became law in 1977. Now, after more than 40 years, big changes are underway.
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 are effective on November 30, 2021.
On April 7, 2021, the CFPB proposed to extend the effective dates for two recent final rules amending Regulation F from November 30, 2021 until January 29, 2022. The comment period ends 30 days after the proposed rule is published in the Federal Register.
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 collected its own debt, but is using a different name. Failure to follow the rule when collecting direct debt can result in UDAP violations.
Participants receive a detailed manual that serves as a handbook long after the program is completed.
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;
Harassing, Oppressive, or Abusive Conduct;
False, Deceptive, or Misleading Representations or Means;
Unfair or Unconscionable Means;
Collection of Time-Barred Debts;
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.
Jack Holzknecht is the CEO of Compliance Resource, LLC. He has been delivering the word on lending compliance for 39 years. In Jack's 34 years as a trainer over 125,000 bankers (and many examiners) have participated in his live seminars and webinars. Jack's career began in 1976 as a federal bank examiner. He later headed the product and education divisions of a regional consulting company. There he developed loan and deposit form systems and software. He also developed and presented training programs to bankers in 43 states. Jack has been an instructor at compliance schools presented by several state bankers associations. He developed and delivered compliance training for the FDIC and OTS for ten years. He is a Certified Regulatory Compliance Manager and a member of the National Speakers Association. He is also a "BOL Guru."