Note: The following is a general discussion on the specified topic or issue and may not be relied on as legal advice in any specific case or matter you encounter. You should review any applicable case, or matter with counsel experienced in this area of law and should not generally rely on the discussion in this Alert.
Date: April 19, 2021
Client Alert: CFPB Confirms CDC Eviction Moratorium and Applies FDCPA Rights and Remedies to Violations.
To: All Scheer Law Group Clients and Affiliates:
Just in case you thought that the CDC’s Eviction Moratorium (extended through June 2021) didn’t matter, the CFPB just issued an interim rule under the Fair Debt Collections Practices Act (“FDCPA”) to make sure you think again.
Background: Long story short: There are currently substantial revisions and new regulations under the FDCPA governing debt collection communications, set to take effect November 30, 2021 (See 12 CFR part 1006, Revising Regulation F, implementing the FDCPA to covered consumer loans, But See the April 7, 2021, CFPB proposal to extend the effective date of the new rules until January 29, 2022). (Note: SLG strongly suggests that covered clients and their services monitor and be prepared).
Interim Rule to Apply FDCPA to CDC Eviction Moratorium: While the CFPB is seeking to delay implementation of the balance of the FDCPA changes, it has just issued an interim rule under Regulation F that is effective May 3, 2021 (See 12 CFR §1006.9(b)). This rule requires that covered lenders and servicers provide written notice to certain consumers of their protections under the CDC”s eviction moratorium. It also prohibits deceptive and misleading communications that would lead a consumer to believe there are no protections and identifies what they are. A form disclosure is offered . Violations will be deemed violation of the FDCPA, allowing consumer claims.
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