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Fair Debt Collection Practices Act ("FDCPA")

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Fair Debt Collection Practices Act ( 23274 Federal Register / Vol. 84, No. 98 / Tuesday, May 21, 2019 / Proposed Rules BUREAU OF CONSUMER FINANCIAL to http://www.regulations.gov. In these practices ‘‘contribute to the PROTECTION addition, comments will be available for number of personal bankruptcies, to public inspection and copying at 1700 marital instability, to the loss of jobs, 12 CFR Part 1006 G Street NW, Washington, DC 20552, on and to invasions of individual 5 [Docket No. CFPB–2019–0022] official business days between the hours privacy.’’ of 10:00 a.m. and 5:00 p.m. Eastern The FDCPA established certain RIN 3170–AA41 Time. You can make an appointment to consumer protections, but interpretative inspect the documents by telephoning questions have arisen since its passage. Debt Collection Practices (Regulation 202–435–7275. Some questions, including those related F) All comments, including attachments to communication technologies that did AGENCY: Bureau of Consumer Financial and other supporting materials, will not exist at the time the FDCPA was Protection. become part of the public record and passed (such as mobile telephones, subject to public disclosure. Proprietary email, and text messaging), have been ACTION: Proposed rule with request for or sensitive personal information, such the subject of inconsistent court public comment. as account numbers, Social Security decisions, resulting in legal uncertainty SUMMARY: The Bureau of Consumer numbers, or names of other individuals, and additional cost for industry and risk Financial Protection (Bureau) proposes should not be included. Comments will for consumers. As the first Federal to amend Regulation F, 12 CFR part not be edited to remove any identifying agency with authority under the FDCPA 1006, which implements the Fair Debt or contact information. to prescribe substantive rules with Collection Practices Act (FDCPA) and FOR FURTHER INFORMATION CONTACT: respect to the collection of debts by debt currently contains the procedures for Adam Mayle, Counsel; or Dania Ayoubi, collectors, the Bureau proposes to State application for exemption from the Owen Bonheimer, Seth Caffrey, David clarify how debt collectors may employ provisions of the FDCPA. The Bureau’s Hixson, David Jacobs, Courtney Jean, or such newer communication proposal would amend Regulation F to Kristin McPartland, Senior Counsels, technologies in compliance with the prescribe Federal rules governing the Office of Regulations, at 202–435–7700. FDCPA and to address other activities of debt collectors, as that term If you require this document in an communications-related practices that is defined in the FDCPA. The Bureau’s alternative electronic format, please may pose a risk of harm to consumers proposal would, among other things, contact [email protected]. and create legal uncertainty for address communications in connection SUPPLEMENTARY INFORMATION: industry. The Bureau also proposes to interpret the FDCPA’s consumer with debt collection; interpret and apply I. Summary of the Proposed Rule prohibitions on harassment or abuse, disclosure requirements to clarify how false or misleading representations, and The Bureau proposes to amend industry participants can comply with unfair practices in debt collection; and Regulation F, which implements the the law and to assist consumers in clarify requirements for certain Fair Debt Collection Practices Act making better-informed decisions about 6 consumer-facing debt collection (FDCPA),1 to prescribe Federal rules debts they owe or allegedly owe. disclosures. governing the activities of debt A. Coverage and Organization of the collectors, as that term is defined in the Proposed Rule DATES: Comments must be received on FDCPA (FDCPA-covered debt or before August 19, 2019. collectors). The proposal focuses on The Bureau’s proposed rule is based ADDRESSES: You may submit comments, debt collection communications and primarily on its authority to issue rules identified by Docket No. CFPB–2019– disclosures and also addresses related to implement the FDCPA. Consequently, 0022 or RIN 3170–AA41, by any of the practices by debt collectors. The Bureau the proposal generally would impose following methods: also proposes that FDCPA-covered debt requirements on debt collectors, as that • Federal eRulemaking Portal: http:// collectors comply with certain term is defined in the FDCPA. However, www.regulations.gov. Follow the additional disclosure-related and record the Bureau proposes certain provisions instructions for submitting comments. retention requirements pursuant to the of the regulation based on the Bureau’s • Email: 2019-NPRM-DebtCollection@ Bureau’s rulemaking authority under Dodd-Frank Act rulemaking authority. cfpb.gov. Include Docket No. CFPB– title X of the Dodd-Frank Wall Street With respect to debt collection, the 2019–0022 or RIN 3170–AA41 in the Reform and Consumer Protection Act Bureau’s authority under the Dodd- subject line of the email. 2 Frank Act generally may address the • (Dodd-Frank Act). Mail: Comment Intake—Debt In 1977, Congress passed the FDCPA conduct of those who collect debt Collection, Bureau of Consumer to eliminate abusive debt collection related to a consumer financial product Financial Protection, 1700 G Street NW, practices by debt collectors, to ensure or service, as that term is defined in the 7 Washington, DC 20552. that those debt collectors who refrain Dodd-Frank Act. Proposed rule • Hand Delivery/Courier: Comment from using abusive debt collection Intake—Debt Collection, Bureau of practices are not competitively 5 Id. 6 Consumer Financial Protection, 1700 G disadvantaged, and to promote Because this is a proposed rule, the Bureau’s Street NW, Washington, DC 20552. statements herein regarding proposed consistent State action to protect interpretations of the FDCPA or the Dodd-Frank Act Instructions: The Bureau encourages consumers against debt collection do not represent final Bureau interpretations. The the early submission of comments. All abuses.3 The statute was a response to Bureau is not, through its proposed interpretations, submissions should include the agency ‘‘abundant evidence of the use of finding that conduct either violates or is name and docket number or Regulatory permissible under the FDCPA or the Dodd-Frank abusive, deceptive, and unfair debt Act. Information Number (RIN) for this collection practices by many debt 7 Covered persons under the Dodd-Frank Act rulemaking. Because paper mail in the collectors.’’ 4 According to Congress, include persons who are ‘‘engage[d] in offering or Washington, DC area and at the Bureau providing a consumer financial product or service’’; this generally includes persons who are ‘‘collecting is subject to delay, commenters are 1 15 U.S.C. 1692–1692p. debt related to any consumer financial product or encouraged to submit comments 2 Public Law 111–203, 124 Stat. 1376 (2010). service’’ (e.g., debt related to the extension of electronically. In general, all comments 3 15 U.S.C. 1692(e). consumer credit). See 12 U.S.C. 5481(5), (6), received will be posted without change 4 15 U.S.C. 1692(a). (15)(A)(i), (x). VerDate Sep<11>2014 22:03 May 20, 2019 Jkt 247001 PO 00000 Frm 00002 Fmt 4701 Sfmt 4702 E:\FR\FM\21MYP2.SGM 21MYP2 jbell on DSK3GLQ082PROD with PROPOSALS2 Federal Register / Vol. 84, No. 98 / Tuesday, May 21, 2019 / Proposed Rules 23275 provisions that rely on the Bureau’s resolve a debt the consumer owes, or within a seven-day period or within Dodd-Frank Act rulemaking authority identify and inform the debt collector if seven days after engaging in a telephone generally would not, therefore, require the debt is one that the consumer does conversation with the person. FDCPA-covered debt collectors to not owe. However, debt collection • Clarify that newer communication comply if they are not collecting debt communications also may constitute technologies, such as emails and text related to a consumer financial product unfair practices, may contain false or messages, may be used in debt or service.8 Such FDCPA-covered debt misleading representations, or may be collection, with certain limitations to collectors, however, would not violate harassing or abusive either because of protect consumer privacy and to prevent the FDCPA by complying with any such their content (for example, when debt harassment or abuse, false or misleading provisions adopted in a final rule. collectors employ profanity) or because representations, or unfair practices. For The proposed rule restates the of the manner in which they are made example, the Bureau proposes to require FDCPA’s substantive provisions largely (for example, when debt collectors place that a debt collector’s emails and text in the order that they appear in the excessive telephone calls with the intent messages include instructions for a statute, sometimes without further to harass or abuse). consumer to opt out of receiving further interpretation. Restating the statutory Communication technology has emails or text messages. The Bureau text of all of the substantive provisions evolved significantly since the FDCPA also proposes procedures that, when may facilitate understanding and was enacted in 1977. Today, consumers followed, would protect a debt collector compliance by ensuring that may prefer communicating with debt from liability for unintentional stakeholders need to consult only the collectors using newer technologies, violations of the prohibition against regulation to view all relevant such as emails, text messages, or web third-party disclosures when
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