Summary: United States: Consumer Financial Protection Bureau provides sample disclosure language and advice regarding its new rule imposed on homeowners collection agents.
Debt collectors, as defined in the Fair Debt Collection Practices Act, are now required to provide affirmative notice to tenants for evictions for non-payment of their protections under the CDC eviction order, as shown in our April 22 message.
Recently, the Consumer Financial Protection Bureau (CFPB) published a Compliance assistance, which provided an example of language debt collectors can use when communicating with tenants to comply with this new disclosure requirement. In his Compliance assistance, the CFPB said that “the example language is only a means of complying with the requirements of IFR 2021 and does not include all possible means of meeting the disclosure requirement.”
Example of disclosure language:
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As a reminder, the disclosure language referenced above can be provided (1) with the eviction notice as a separate document, Where (2) in the eviction notice itself.
In addition, the disclosure should be in a location and font size that is easily perceptible and readable to the consumer, although no minimum character size is required.
Other information regarding the disclosure requirement:
As discussed in our April 22 message, the language of disclosure must be included in the first notice of eviction for non-payment sent by the debt collector to the tenant. The definition of eviction notice is intended to encompass all required notices, regardless of the names by which such notices are known, for example: notice of departure, notice of payment of rent or departure and notice of termination of tenancy. .
If the debt collector is not involved in the eviction process until the eviction petition / complaint is filed (for example, in case the debt collector is a lawyer), the referenced language above must be given when serving the eviction request / claim on the tenant and the beneficiaries.