The CFPB updated a rule proposal designed to clarify certain restrictions and address predatory debt collection practices.

The supplemental proposal amends Regulation F which implements the "Fair Debt Collection Practices Act." The amendments would impose disclosure requirements on debt collectors attempting to collect "time-barred debt" (i.e., debts for which the relevant state of limitations has expired), and would prohibit debt collectors from using non-collection means (e.g., phone calls) unless they disclose during initial contact with consumers, as well as on any required validation notice, that the debt is time-barred. The supplemental proposed amendment also proposes model language and forms that debt collectors may use to comply with the proposed disclosure requirements.

As previously covered, the original proposal would, among other things:

  • limit collection call attempts to seven over a seven-day period;
  • require a debt collector to wait one week after speaking with a consumer before calling again;
  • force debt collectors to send disclosures to consumers with debt information, such as itemizations of debt, and guidance on how consumers may respond to collection communications;
  • allow emails, text messages and other new communication technologies to be used in collection communications; and
  • prohibit a debt collector from suing or threatening to sue a consumer over time-barred debt.

Comments on the supplemental proposal must be submitted within 60 days after publication in the Federal Register.

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