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ABA: The American Bankers Association
Compliance News

ABA Issues Staff Analysis on Partial Final Debt Collection Rule

ABA has published a staff analysis on the Partial Final Debt Collection Rule released on Oct. 30, 2020, which modernizes and clarifies rules around third-party debt collection. The final rule takes effect on Nov. 30, 2021.

The final rule primarily addresses FDCPA communications or attempts to communicate; use of text messages and emails; and telephone call frequency. It also addresses debt sales, disputes, and record retention requirements for debt collectors. The Bureau has stated it plans to release another iteration of the Rule this month that will focus on consumer disclosures and time-barred debts. Although ABA and other industry stakeholders successfully advocated the Final Rule not apply to banks as first-party creditors as proposed in the May 2019 rule, banks still must be familiar with the Final Rule in order to properly monitor debt collectors banks hire and understand certain practices deemed unfair or deceptive under FDCPA because the Bureau could apply these standards to first-party creditors like banks under unfair and deceptive provisions in other federal statutes.