Debt Collection Practices (Regulation F); Withdrawal of Proposal To Delay Effective Date
| Published date | 01 September 2021 |
| Citation | 86 FR 48918 |
| Record Number | 2021-18799 |
| Section | Proposed rules |
| Court | Consumer Financial Protection Bureau |
Federal Register, Volume 86 Issue 167 (Wednesday, September 1, 2021)
[Federal Register Volume 86, Number 167 (Wednesday, September 1, 2021)]
[Proposed Rules]
[Page 48918]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-18799]
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Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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Federal Register / Vol. 86, No. 167 / Wednesday, September 1, 2021 /
Proposed Rules
[[Page 48918]]
BUREAU OF CONSUMER FINANCIAL PROTECTION
12 CFR Part 1006
[Docket No. CFPB-2021-0007]
RIN 3170-AA41
Debt Collection Practices (Regulation F); Withdrawal of Proposal
To Delay Effective Date
AGENCY: Bureau of Consumer Financial Protection.
ACTION: Proposed rule; withdrawal.
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SUMMARY: In 2020, the Bureau of Consumer Financial Protection (Bureau)
finalized two rules (together, the Debt Collection Final Rules)
revising Regulation F, which implements the Fair Debt Collection
Practices Act (FDCPA). As finalized, the Debt Collection Final Rules
had an effective date of November 30, 2021. On April 7, 2021, the
Bureau issued a proposal to delay that effective date by sixty days,
until January 29, 2022. The Bureau is withdrawing that proposal for the
reasons provided in this document. The Debt Collection Final Rules will
take effect on November 30, 2021.
DATES: The proposed rule, published at 86 FR 20334, April 19, 2021, is
withdrawn as of September 1, 2021.
FOR FURTHER INFORMATION CONTACT: Briana McLeod, Honors Attorney, or
Seth Caffrey, Courtney Jean, or Kristin McPartland, Senior Counsels,
Office of Regulations, at 202-435-7700. If you require this document in
an alternative electronic format, please contact
[email protected].
SUPPLEMENTARY INFORMATION: In October and December 2020, the Bureau
issued the Debt Collection Final Rules to revise Regulation F, 12 CFR
part 1006, which implements the FDCPA.\1\ The Debt Collection Final
Rules prescribe Federal rules governing the activities of debt
collectors as defined in the FDCPA. As finalized, the Debt Collection
Final Rules had an effective date of November 30, 2021, one year after
the first debt collection final rule was published in the Federal
Register. In finalizing the effective date for both final rules, the
Bureau determined that a one-year period from the publication date of
the first final rule would provide debt collectors sufficient time to
implement the provisions of both rules.\2\
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\1\ 85 FR 76734 (Nov. 30, 2020); 86 FR 5766 (Jan. 19, 2021).
\2\ 85 FR 76734, 76863 (Nov. 30, 2020); 86 FR 5766, 5838 (Jan.
19, 2021).
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Because of the ongoing societal disruption caused by the global
COVID-19 pandemic, and to afford stakeholders additional time to review
and implement the Debt Collection Final Rules, the Bureau proposed in
April 2021 to extend the November 30 effective date by 60 days, to
January 29, 2022.\3\ The Bureau requested comment on whether to extend
the effective date, and if so, whether 60 days was an appropriate
period for an extension.
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\3\ 86 FR 20334 (Apr. 19, 2021). The April 2021 proposal
described the Bureau's legal authority for issuing both that
proposal and the Debt Collection Final Rules. Id. at 20335.
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Most industry commenters stated that, despite the pandemic, they
will be prepared to comply with the Debt Collection Final Rules by
November 30, 2021. Many industry commenters also stated that an
extension would reduce regulatory certainty and thus increase burden on
small entities. Consumer advocate commenters generally supported
extending the effective date. However, these commenters generally did
not focus on the effects of the COVID-19 pandemic or on whether
stakeholders need additional time to review and implement the Rules.
Instead, they urged the Bureau to use the extension to reconsider the
Debt Collection Final Rules. However, extending the effective date to
reconsider the rules is beyond the scope of the Bureau's proposal. For
these reasons, the Bureau has decided to withdraw the proposal. The
Debt Collection Final Rules will take effect on November 30, 2021.
The April 2021 proposal explained that the Bureau previously
considered the costs, benefits, and impacts of the Debt Collection
Final Rules' major provisions. It further explained that, compared to
the baseline established by the rules, the proposed extension of the
rules' effective date would generally benefit covered persons by
facilitating initial compliance with the rules' requirements and
delaying the start of ongoing compliance costs but that it could also
delay consumers' realization of benefits arising from the protections
provided by the rules. As discussed above, industry commenters
generally did not agree that delaying the effective date would
facilitate compliance. In addition, the Bureau indicated that it did
not expect the proposed rule to have a differential impact on
depository institutions and credit unions with $10 billion or less in
total assets as described in section 1026 of the Dodd-Frank Act or on
consumers in rural areas. The Bureau also stated that it did not
believe that the proposed effective date extension would reduce
consumer access to consumer financial products and services, as the
evidence discussed in the Debt Collection Final Rules indicates that
the rules themselves will have limited negative impact on access to
credit. Because this document withdraws the proposal to change the
effective date, any costs and benefits associated with an extension
will not be realized. Further, there are no additional costs, benefits,
or impacts associated with this document beyond those previously
considered with respect to the Debt Collection Final Rules' major
provisions. The Bureau has determined that this document will not have
any new or revised information collection requirements (recordkeeping,
reporting, or disclosure requirements) on covered entities or members
of the public that would constitute collections of information
requiring OMB approval under the Paperwork Reduction Act of 1995.\4\
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\4\ 44 U.S.C. 3501 et seq.
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Signing Authority
The Acting Director of the Bureau, David Uejio, having reviewed and
approved this document, is delegating the authority to electronically
sign this document to Laura Galban, a Bureau Federal Register Liaison,
for purposes of publication in the Federal Register.
Dated: August 26, 2021.
Laura Galban,
Federal Register Liaison, Bureau of Consumer Financial Protection.
[FR Doc. 2021-18799 Filed 8-31-21; 8:45 am]
BILLING CODE 4810-AM-P
