CFPB updates debt collection rule small-entity compliance guide

Updates to the small entity compliance guide addressing December revisions to fair debt collection rules were announced in an email Friday by the Consumer Financial Protection Bureau (CFPB).

The rules, which implement the Fair Debt Collection Practices Act (FDCPA), were revised in October (on communications) and December (on disclosures, furnishing, and time-barred debt) and are expected to have a delayed effective date under a recent bureau proposal.

The compliance guide revisions announced Friday focus on the December 2020 final rule. That rule clarifies consumer disclosure requirements, requires certain actions before furnishing information to a consumer reporting agency, and sets prohibitions regarding the collection of time-barred debt.

Both final rules were approved with an effective date of Nov. 30, 2021. Under the recent proposal, offered to give institutions some flexibility amid the ongoing COVID-19 pandemic, the rule would take effect Jan. 29, 2022.

Updated compliance guide

RR: Citing pandemic challenges, CFPB proposes delay in new debt collection rules to late January 2022 (April 7, 2021)

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