“Fast facts” about a proposal to clarify regulations covering debt collections of debt past the statute of limitations was published Monday by the federal consumer financial protection agency.
The two-page fact sheet, published by the Consumer Financial Protection Bureau (CFPB), offers the logistical details – including comment period duration and proposed effective date – as well as a brief summary of the proposal, which is a supplement to a proposal issued by the bureau last spring amending Regulation F, the Fair Debt Collection Practices Act (FDCPA).
The pamphlet outlines from the proposal key disclosures and model forms. It also notes additional resources about the debt collection rule.
The supplemental proposal on “time-barred” debt collections was released late last week by the bureau. Among other things outlined in the Supplemental Notice of Proposed Rulemaking (Supplemental NPRM), it would ban debt collectors from making calls or taking other “non-litigation means” to collect on debt that is beyond the statute of limitations (that is, “time barred”) unless it is disclosed during an initial contact that the debt is, in fact, past the time limit.