On May 7, the Consumer Financial Protection Bureau (CFPB) released a 538-page Notice of Proposed Rulemaking (the Rule) that would update the Fair Debt Collection Practices Act (FDCPA). The Rule would be the first major update to the FDCPA since its enactment in 1977 and gives much-needed clarification on the bounds of federally-regulated activities of “debt collectors,” as that term is defined in the FDCPA, particularly for communication by voicemail, email, and texts. It is important to remember that the Rule is only a proposal, and it is already drawing fire from consumer advocates. The Rule was published in the Federal Register on May 21 and will be open for public comment through August 19 (90 days). After the public comment period is closed, the CFPB will either issue a final rule or issue another proposed rule.
Troutman has prepared a whitepaper reflecting the current best understanding of key provisions the proposed rule.
Download the whitepaper here.