On November 30, 2020, the CFPB issued a final rule amending Regulation F (12 CFR 1006), which implements the Fair Debt Collection Practices Act (FDCPA) and prescribes Federal rules governing certain activities of debt collectors, as that term is defined in the FDCPA. The final rule, among other things, clarifies the information that a debt collector must provide to a consumer at the outset of debt collection communications and provides a model notice containing such information, prohibits debt collectors from bringing or threatening to bring a legal action against a consumer to collect a time-barred debt, and requires debt collectors to take certain actions before furnishing information about a consumer’s debt to a consumer reporting agency.

Although many financial institutions do not act as third-party debt collectors, institutions should be mindful of the acts and practices prohibited under the FDCPA as such acts and practices provide insight into what may be or is considered unfair, deceptive and/or abusive.

The rule becomes effective November 30, 2021.