CFPB

The CFPB has issued a proposal to amend Regulation F, which implements the Fair Debt Collection Practices Act (FDCPA). The proposal seeks public comment on Federal rules governing the activities of debt collectors covered by the FDCPA. Among other things, the proposal would incorporate many existing provisions of the FDCPA into Regulation F with only minor wording and organizational changes. This document generally focuses on the portions of the proposal that would substantially clarify or interpret FDCPA requirements.

This is the table of contents of the May 2019 version of the CFPB’s proposed Regulation F.

Building on CFPB qualitative work, CFPB engaged ICF in September 2019 to quantitatively measure how variations of the language, content, and display in the Regulation F validation notices affect consumer understanding and stated behavior. The survey was conducted with 8,011 total respondents, with 5,312 having experienced debt collections. The study was a web survey conducted with respondents who were panelists from Ipsos KnowledgePanel.

This report presents the results of a large-scale online survey experiment designed to test several versions of Regulation F proposed disclosures to support the understanding of time-barred debt and revival. These data were collected by ICF International on behalf of the CFPB between May 2019 and September 2019. ICF International produced a detailed report, available at this link, on its methodology, including sampling, response rates, and question development.

On May 7, 2019, the CFPB issued a proposal (the May 2019 Proposed Rule) to amend Regulation F, which implements the Fair Debt Collection Practices Act (FDCPA). The May 2019 Proposed Rule was published in the Federal Register on May 21, 2019 and would prescribe federal rules governing the activities of debt collectors, as that term is defined in the FDCPA. The supplemental proposal on time-barred debt supplements the May 2019 Proposed Rule by adding a proposed §1006.26(c), as well as a related provision of §1006.34(c), Model Forms, and Official Interpretations.

On May 21, 2019, the Bureau published in the Federal Register a proposed rule (May 2019 Proposed Rule) that would prescribe Federal rules governing the activities of debt collectors, as that term is defined in the FDCPA. This proposal supplements the May 2019 Proposed Rule by proposing to require debt collectors to make certain disclosures when collecting time-barred debts.

On October 30, 2020, the CFPB issued a final Regulation F implementing the Fair Debt Collection Practices Act (FDCPA). Regulation F is available at https://www.consumerfinance.gov/rules-policy/finalrules/debt-collection-practices-regulation-f/. The Regulation will become effective one year after publication in the Federal Register.

In this research project, the CFPB tested whether the Regulation F model validation notice effectively disclosed debt information and what actions consumers can take in response to the notice. Our findings demonstrate that the model validation notice is clear, easy to understand, and effectively provides consumers with actionable information.

On December 18, 2020, the CFPB issued a final rule (December 2020 Rule) amending Regulation F to provide additional requirements regarding validation information and disclosures provided at the outset of debt collection communications, prohibit suits and threats of suits regarding time-barred debt, and identify actions that must be taken before a debt collector may report information about a debt to consumer reporting agencies (CRAs).

This guide meets the requirements of section 212 of the Small Business Regulatory Enforcement Fairness Act of 1996 with regard to the Debt Collection Rule and is a Compliance Aid issued by the Consumer Financial Protection Bureau. The Bureau published a Policy Statement on Compliance Aids, available at www.consumerfinance.gov/policy-compliance/rulemaking/finalrules/policy-statement-compliance-aids/, that explains the Bureau’s approach to Compliance Aids.