FDCPA Regulation F

The Consumer Financial Protection Bureau (CFPB) published ‘‘Debt Collection Practices (Regulation F)’’ on January 19, 2021, to revise Regulation F, which implements the Fair Debt Collection Practices Act. Omissions in that document resulted in certain paragraphs in the Official Interpretations (Commentary) not being incorporated into the Code of Federal Regulations (CFR). This document corrects the Official Interpretations to Regulation F by adding the missing paragraphs to the CFR.

Section 808(1) of the Fair Debt Collection Practices Act (FDCPA or Act) prohibits debt collectors from collecting any amount (including any interest, fee, charge, or expense incidental to the principal obligation) unless that amount is expressly authorized by the agreement creating the debt or permitted by law.

The Consumer Financial Protection Bureau (CFPB) is issuing this advisory opinion to affirm that the Fair Debt Collection Practices Act (FDCPA) and its implementing Regulation F prohibit a debt collector, as that term is defined in the statute and regulation, from suing or threatening to sue to collect a time-barred debt. Accordingly, an FDCPA debt collector who brings or threatens to bring a State court foreclosure action to collect a time-barred mortgage debt may violate the FDCPA and Regulation F.

This CFPB consumer education file explains to consumers what a zombie second mortgage is.

This CFPB blog explaining consumer rights when a debt collector contacts consumers regarding a zombie second mortgage.

This CFPB advisory opinion, 88 Fed. Reg. 26475 (May 1, 2023) and effective May 1, 2023, explains that the FDCPA and Regulation F prohibit a debt collector from suing or threatening to sue to collect a time-barred debt. Accordingly, a debt collector who brings or threatens to bring a state court foreclosure action to collect a time barred mortgage debt may violate the FDCPA and Regulation F.

This is a federal. interagency interpretation of FDCPA Regulation F, issued in December of 2022, interpreting the various provisions of CFPB Reg. F.  It is found on the CFPB website at https://files.consumerfinance.gov/f/documents/cfpb_fair-debt-collection-practices-act-fdcpa-procedures_2022-12.pdf.

This Federal Register notice, 86 Fed. Reg. 48918 (Sept. 1, 2021) withdraws the delay of Regulation F’s effective date. In 2020, the CFPB finalized two rules revising Regulation F, which implements the FDCPA. As finalized, the Debt Collection Final Rules had an effective date of November 30, 2021. On April 7, 2021, the CFPB issued a proposal to delay that effective date by sixty days, until January 29, 2022. The CFPB, by this notice, is withdrawing that proposal for reasons described in the notice.

This Commentary is the vehicle by which the staff of the Federal Trade Commission

publishes its interpretations of the Fair Debt Collection Practices Act (FDCPA). It is a guideline

intended to clarify the staff interpretations of the statute, but does not have the force or effect of

statutory provisions. It is not a formal trade regulation rule or advisory opinion of the Commission,

and thus is not binding on the Commission or the public.

The CFPB is seeking comment, data, and information from the public about debt collection practices. The CFPB is considering proposing rules relating to debt collection and is interested in learning through responses to this advance notice of proposed rulemaking (ANPR) about the debt collection system, about consumer experiences with the debt collection system, and about how rules for debt collectors might protect consumers without imposing unnecessary burdens on industry.