Skip to main content

CFPB Seeks Input on Time-Barred Debt Collection Proposal

Phil Hall
Feb 21, 2020
The Consumer Financial Protection Bureau has announced that it has taken measures to make it easier for consumers with urgent financial needs to obtain access to mortgage credit more quickly in the middle of the COVID-19 pandemic

The Consumer Financial Protection Bureau (Bureau) has issued a Supplemental Notice of Proposed Rulemaking (NPRM) related to time-barred debt collection.
The agency is proposing to prevent collectors from using non-litigation means – including telephone calls – to collect on time-barred debt unless collectors disclose to consumers during the initial contact and on any required validation notice that the debt is time-barred. Last May, the CFPB published a proposal to implement the Fair Debt Collection Practices Act as a means of providing consumers with clear protections against harassment by debt collectors and straightforward options to address or dispute debts. The proposal also presented defined limits on the number of calls debt collectors may place to reach consumers on a weekly basis and clarified how collectors may communicate lawfully in voicemail and digital messaging.
Furthermore, the NPRM also proposed to prohibit debt collectors from suing or threatening to sue on debts they know or should know are time barred. However, the CFPB also included “know or should know” standard in its proposal recognizing the concern that some debt collectors could be genuinely unaware if the statute of limitations expired even after undertaking a reasonable investigation. 
The Supplemental NPRM proposes model language and forms that debt collectors could use to comply with the proposed disclosure requirements, the CFPB added. The public is invited to submit written comments on the proposed rule, including on the proposed knowledge standard, in the 60 days following its publication in the Federal Register.


Feb 21, 2020
The Fed: Tapering Could Start In November

Open Market Committee also expects to raise federal funds rate a year earlier, in 2022

Regulation and Compliance
Sep 23, 2021
HUD, FHFA: Freddie Mac Can Buy Group Home-Backed Loans

Agencies issue rule clarification after a mortgage lender refused to lend to an individual renting to a group home

Regulation and Compliance
Sep 23, 2021
Fannie Mae Plans To Restart Credit Risk Transfers In 2021

Paused Since March 2020, New CRT Transactions To Begin In October

Regulation and Compliance
Sep 21, 2021
Biden Nominates McCargo To Lead Ginnie Mae

Currently Serves As Senior Advisor For Housing Finance At HUD

Regulation and Compliance
Sep 14, 2021
OCC Plans To Rescind 2020 CRA Rule

The OCC formally issued a proposal to rescind a controversial rule within the Community Reinvestment Act (CRA) that was published in June 2020.

Regulation and Compliance
Sep 10, 2021
CSBS Changes Servicer Liquidity Policy

CSBS And MBA Encourage States To Adopt Consistently

Regulation and Compliance
Sep 08, 2021