CFPB Debt Collection Rule Resource Guide

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Advice Regarding Implementation

The following perspective was provided by Aylix Jensen of Moss & Barnett.

Before making significant changes to your collection practices to comply with the CFPB’s final debt collection rule (the “Rule”), it is important to understand the regulatory timeline for the effective date. According to the CFPB, the Rule becomes effective one year after it is published in the Federal Register. However, after publication, the Rule must first undergo a review process pursuant to the Congressional Review Act. This means that the CFPB will submit the Rule to the House and Senate at least sixty days before the effective date. Congress will then have the opportunity to submit a joint resolution of disapproval to the President. If executed, the Rule becomes nullified and will not go into effect. Nullifying the rule will also bar the CFPB from later adopting any substantially similar rule absent a new act of Congress. Accordingly, I recommend refraining from taking any significant action with respect to compliance with the Rule until we get closer to an effective date, or at least until after the CFPB issues the subsequent disclosure-focused final rule later this month.