A Paradigm Shift in Consumer Collections: How the CFPB’s Final Rule is Certain to Affect Creditors and Debt Collectors

The Fair Debt Collection Practices Act (FDCPA) is a dense federal statute that governs debt collection.

If you have read some of my previous articles on the topic, you will recall that this set of laws, in conjunction with similar state laws, were enacted to protect consumers from abusive and unfair practices by debt collectors.  However, since being enacted, the FDCPA has been extensively litigated to clarify its broad application and remains a source of much confusion.

The Consumer Financial Protection Bureau (CFPB) was created in part to make rules and regulations that implement the FDCPA.  In October 2020, after several years of soliciting and reviewing comments, the CFPB issued its ‘final’ debt collection rule meant to interpret and advance the goals of the FDCPA, entitled “Regulation F.”  Regulation F (which is set to take effect on November 30, 2021) will not only tighten some of the restrictions already in place, but it will potentially alter how debt collectors and creditors manage communications with debtors and operate their businesses going forward.