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Abstract: United States: Consumer Financial Protection Bureau provides sample disclosure language and guidance regarding its new rule imposed upon debt collectors of landlords.
Debt collectors, as defined under the Fair Debt Collection Practices Act, are now obligated to provide affirmative notice to tenants in non-payment eviction matters of their protections under the CDC Eviction Order, as discussed in our April 22 post.
Recently, the Consumer Financial Protection Bureau (CFPB) issued a Compliance Aid, which provided sample language debt collectors can use when communicating with tenants to comply with this new disclosure requirement. In its Compliance Aid, the CFPB stated that the “sample language is just one way to comply with the requirements in the 2021 IFR, and does not include all possible ways to satisfy the disclosure requirement.”
Heinrich, Luján, Wyden Introduce Bill To End Paycheck Protection Program Abuse By Predatory Debt Collectors
U.S. SENATE News:
WASHINGTON, D.C. U.S. Senators Martin Heinrich (D-N.M.), Ben Ray Luján (D-N.M.) and Ron Wyden (D-Wis.) introduced legislation to prevent predatory debt collectors from accessing funding through the Paycheck Protection Program (PPP).
The Ceasing Underserved Relief Benefits for Debt Collectors Act – or CURB Debt Collectors Act–would prevent debt collectors that have committed violations of the Fair Debt Collection Practices Act from accessing PPP forgivable loans. Debt collectors, including firms that are known to have violated consumers’ rights, have received millions of dollars in PPP funding.
THE FINE PRINT
Company files 12,000 suits that force debtors to travel to Leominster from afar; attorney general hits back
By Sean P. Murphy Globe Staff,Updated May 9, 2021, 4:28 p.m.
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For more than a decade, a Leominster medical devices company with customers scattered throughout New England filed thousands of debt collection lawsuits in the local courthouse.
In doing so, Regional Home Care Inc., which provides equipment to treat sleep apnea, oxygen deficiency, and other respiratory conditions, became by far the most prolific filer of such cases in that Central Massachusetts court.
Last year, the deluge of cases caught the attention of Attorney General Maura Healeyâs office, which ordered RHC to refrain from making any new filings while it investigated the company for possible violation of consumer protection laws.
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Does the federal Fair Debt Collection Practices Act (the FDCPA) apply to communications between a debt collector and its vendors? And, is the FDCPA a consumer privacy statute? In an apparent issue of first impression, the Eleventh Circuit answered a resounding
yes.
In an April 21, 2021 opinion:
Richard Hunstein v. Preferred Collection and Management Services, Inc., the Eleventh Circuit ruled that a debt collector’s transmittal of a consumer’s personal information to a dunning vendor was a third-party communication in violation of 15 U.S.C. § 1692c(b).
This opinion has the potential to upend the way debt collectors – including financial institutions that may be considered a debt collector under the FDCPA – run their businesses. At least in the short term, this opinion will likely result in a new wave of FDCPA class action lawsuits, particularly in the Eleventh Circuit (Alabama, Florida, and Georgia).