CFPB Issues Rule Affecting Evictions

[Nathan Gesner]

Something worth looking at.

CFPB Issues Rule Affecting Evictions

April 21, 2021 by NARPM Advocacy

The Consumer Financial Protection Bureau (CFPB) has released an interim final rule that would, in their words, provide that

.....debt collectors, including attorneys, seeking to evict tenants for non-payment of rent must provide tenants who may have rights under the CDC order with clear and conspicuous written notice of those rights. The notice must be provided on the same date as the eviction notice, or, if no eviction notice is required by law, on the date that the eviction action is filed.

And, the kicker is that this must be in writing (on paper), not via email.

Here is the crux of what the rule does:

Debt collectors who evict tenants who may have rights under the moratorium without providing notice of the moratorium or who misrepresent tenants’ rights under the moratorium can be prosecuted by federal agencies and state attorneys general for violations of the Fair Debt Collection Practices Act (FDCPA) and are also subject to private lawsuits by tenants.

As an interim final rule, this would take effect on May 3, 2021. Interim rules are where an agency believes that a rule is needed with such haste as to promulgate it without comment. It could be later altered based on comments or by court action.

The release and documents from CFPB are here: https://www.consumerfinance.gov/about-us/newsroom/cfpb-rule-clarifies-tenants-can-hold-debt-collectors-accountable-for-illegal-evictions/.