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ABA: The American Bankers Association
Compliance News

ABA Publishes Staff Analysis on Second Final Debt Collection Rule

ABA has published a members-only staff analysis on second part of the CFPB’s debt collection rule that was finalized in December. The final rule modernizes and clarifies rules regarding passive debt collection, time-barred debt and required validation notices.

Both parts of the debt collection rule take effect on Nov. 30. Although ABA and other industry stakeholders successfully advocated so that the final rules do not apply to banks as first-party creditors—as originally proposed—banks must still be familiar with the debt collection rules in order to properly monitor any third-party debt collectors that they hire. In addition, some provisions in the final rules could be applied to first-party creditors like banks through unfair and deceptive laws because some practices the Fair Debt Collection Practices Act addresses were deemed unfair or deceptive for purposes of FDCPA.