On Friday, the Consumer Financial Protection Bureau announced that it was extending the comment period on its Supplemental Notice of Proposed Rulemaking related to time-barred debt disclosures for an additional 30 days.
The 60-day comment period was originally scheduled to expire on May 4. It will now extend until June 5. Comments can be filed three ways:
- Through the Federal eRulemaking Portal: http://www.regulations.gov. Follow the instructions for submitting comments.
- Email: 2020-NPRM-DebtCollection@cfpb.gov. Include Docket No. CFPB-2020-0010 or RIN 3170-AA41 in the subject line of the email.
- Mail/Hand Delivery/Courier: Comment Intake, Bureau of Consumer Financial Protection, 1700 G Street NW, Washington, DC 20552.
The proposed rule would require collectors to include additional disclosures when attempting to collect debts where the statute of limitations to sue has expired. The proposed rule would require collectors to clearly and conspicuously disclose:
- That the law limits how long the consumer can be sued for a debt and that, because of the age of the debt, the debt collector will not sue the consumer to collect it; and
- If, under applicable law, the debt collector’s right to bring a legal action against the consumer can be revived, the fact that revival can occur and the circumstances in which it can occur.
The CFPB issued a number of proposals that would be included in the validation notice sent to consumers. The proposed disclosures, based on the different laws of each state, are:
- The law limits how long you can be sued for a debt. Because of the age of this debt, we will not sue you for it.
- The law limits how long you can be sued for a debt. If you do nothing or speak to us about this debt, we will not sue you to collect it. This is because the debt is too old. BUT if you make a payment or acknowledge in writing that you owe this debt, then we can sue you to collect it.
- The law limits how long you can be sued for a debt. If you do nothing or speak to us about this debt, we will not sue you to collect it. BUT if you make a payment, then we can sue you to collect it.
- The law limits how long you can be sued for a debt. If you do nothing or speak to us about this debt, we will not sue you to collect it. This is because the debt is too old. BUT if you acknowledge in writing that you owe this debt, then we can sue you to collect it.
