Consumer Financial Protection Bureau Issues Rule to Support Federal Eviction Moratorium
April 21, 2021
On April 19, the Consumer Financial Protection Bureau (CFPB) issued a rule related to the Centers for Disease Control and Prevention (CDC)’s eviction moratorium, which was extended through June 30, 2021. The rule is designed to prevent what the administration has referred to as "illegal evictions" that have taken place despite the protections in the CDC order.
The CFPB’s new rule requires debt collectors — including an agent or attorney acting as a debt collector on behalf of a landlord or owner of the residential property — to provide written notice to tenants of their rights under the federal eviction moratorium, and prohibits debt collectors from misrepresenting a tenant’s eligibility for the protections established by the order.
Please note, this email and the information outlined below are strictly for informational purposes only. This email does not constitute legal advice. FAA members are encouraged to consult legal counsel regarding the new CFPB rule and the CDC eviction moratorium.
How will this rule impact apartment community operations?
Under the rule, debt collectors who are seeking to evict tenants for nonpayment of rent must provide written notice (it cannot be provided by phone, email, or text message) to tenants who may have rights under the CDC order. The disclosure notice must be provided on the same date as the eviction notice. The CFPB provided sample disclosure language, which can be used to meet this requirement. In addition, CFPB provided a Fast Facts and Summary of the new rule, which may be helpful for FAA members.
When does this rule go into effect?
The rule's effective date is May 3, 2021.
What happens if a debt collector fails to comply with this new rule?
According to the CFPB, "Debt collectors who evict tenants who may have rights under the CDC moratorium without providing notice of the moratorium or who misrepresent tenants’ rights under the moratorium can be prosecuted by federal agencies and state attorneys general for violations of the Fair Debt Collection Practices Act (FDCPA) and are also subject to private lawsuits by tenants."
What should I do now?
FAA members are encouraged to consult corporate legal counsel immediately for guidance regarding the new CFPB rule and your company's eviction filing procedures going forward.