Debt collectors that evict tenants will have to provide written notice to those individuals, alerting them to their rights under the Centers for Disease Control’s moratorium on evictions and will face prosecution by state attorneys general for violations of the Fair Debt Collection Practices Act or private lawsuits by the tenants for not doing so under a rule issued yesterday by the Consumer Financial Protection Bureau. The rule goes into effect on May 3.
Collectors, including attorneys, will be required to provide a clear and conspicuous written notice to tenants on the same date as the eviction notice or on the date the eviction action is filed, according to the rule, which is aimed at protecting individuals who have been impacted by the COVID-19 pandemic. The CFPB has estimated that nearly 9 million renters are behind on their payments and that “tens of thousands of renters are being evicted every week, often without being told of their rights under the CDC moratorium.”
The CFPB said there are “probably thousands” of individuals who have been evicted but would have likely been able to stay in their homes or apartments under the CDC’s moratorium.
“Our hope is that by making it very clear that people have to be told before they’re evicted that they have a right under the CDC moratorium, we’ll see an increase in tenants accessing the rights,” said CFPB senior advisor Diane Thompson in a call with reporters yesterday.
Collectors are not allowed to provide the notice via phone calls, text message, or email. The CFPB provided a sample disclosure that collectors and attorneys can use when seeking to evict tenants for non-payment of rent. It also published a summary of the rule.
The CDC has sought to ban evictions and foreclosures as a means of preventing the spread of COVID-19 by keeping individuals in their homes.
“With COVID-19 killing hundreds of Americans every day, kicking families out into the street during this pandemic may literally be a death sentence,” said CFPB Acting Director Dave Uejio, in a statement. “No one should be evicted from their home without understanding their rights, and we will hold accountable those debt collectors who move forward with illegal evictions. We encourage debt collectors to work with tenants and landlords to find solutions that work for everyone.”
Consumer advocates praised the CFPB’s move.
“The CFPB’s action today provides immediate action toward protecting the millions of families that are at risk of losing their homes, families that are disproportionately of color or low income,” said Andrea Bopp Stark, an attorney with the National Consumer Law Center, in a statement. “This action provides tenants with the information they need regarding their rights to stay in their homes and defend against an eviction. It also reinforces the CDC moratorium on evictions and the importance of families having a safe place to live during the pandemic.”
Debt collectors that evict tenants will have to provide written notice to those individuals, alerting them to their rights under the Centers for Disease Control’s moratorium on evictions and will face prosecution by state attorneys general for violations of the Fair Debt Collection Practices Act or private lawsuits by the tenants for not doing so under a rule issued yesterday by the Consumer Financial Protection Bureau. The rule goes into effect on May 3.
Collectors, including attorneys, will be required to provide a clear and conspicuous written notice to tenants on the same date as the eviction notice or on the date the eviction action is filed, according to the rule, which is aimed at protecting individuals who have been impacted by the COVID-19 pandemic. The CFPB has estimated that nearly 9 million renters are behind on their payments and that “tens of thousands of renters are being evicted every week, often without being told of their rights under the CDC moratorium.”
The CFPB said there are “probably thousands” of individuals who have been evicted but would have likely been able to stay in their homes or apartments under the CDC’s moratorium.
“Our hope is that by making it very clear that people have to be told before they’re evicted that they have a right under the CDC moratorium, we’ll see an increase in tenants accessing the rights,” said CFPB senior advisor Diane Thompson in a call with reporters yesterday.
Collectors are not allowed to provide the notice via phone calls, text message, or email. The CFPB provided a sample disclosure that collectors and attorneys can use when seeking to evict tenants for non-payment of rent. It also published a summary of the rule.
The CDC has sought to ban evictions and foreclosures as a means of preventing the spread of COVID-19 by keeping individuals in their homes.
“With COVID-19 killing hundreds of Americans every day, kicking families out into the street during this pandemic may literally be a death sentence,” said CFPB Acting Director Dave Uejio, in a statement. “No one should be evicted from their home without understanding their rights, and we will hold accountable those debt collectors who move forward with illegal evictions. We encourage debt collectors to work with tenants and landlords to find solutions that work for everyone.”
Consumer advocates praised the CFPB’s move.
“The CFPB’s action today provides immediate action toward protecting the millions of families that are at risk of losing their homes, families that are disproportionately of color or low income,” said Andrea Bopp Stark, an attorney with the National Consumer Law Center, in a statement. “This action provides tenants with the information they need regarding their rights to stay in their homes and defend against an eviction. It also reinforces the CDC moratorium on evictions and the importance of families having a safe place to live during the pandemic.”
