Part II of the CFPB’s Final Collection Rule: What You Need to Know
Having released the first part of its final collection rule on October 30, the Consumer Financial Protection Bureau (CFPB) is expected to release the second part of its final rule tomorrow. Parts I and II represent the first major substantive update to the Fair Debt Collection Practices Act since its creation in 1977.
Based on the CFPB’s advance description, we expect Part II to focus on disclosures, in particular new disclosures addressing the collection of time-barred debt and changes to the validation notice, and include a new model form for the validation notice. Other topics we expect Part II to cover include the rules, if any, regarding revival of time-barred debt, collection of decedent debt, and passive debt collection through negative credit reporting.