(Jan. 29, 2021) In addition to the three summaries of NCUA actions, NASCUS this week also posted a new summary of CFPB recent actions – this one on the bureau’s final rule on debt collection practices related to time-barred debts. The summary is available to members only.
Under the final rule, debt collectors are banned from making calls or taking other “non-litigation means” to collect on debt that is beyond the statute of limitations unless it is disclosed during an initial contact that the debt is, in fact, past the time limit. The final rule also requires the debt collector to inform the consumer that the statute of limitations on the debt has expired during any required validation.
The bureau has said that its own research has found that a time-barred debt disclosure helps consumers understand that they cannot be sued if they do not pay, which it noted can help consumers make better-informed decisions whether to pay the debt or not.