Debt Collection Practices (Regulation F); Delay of Effective Date, 20334-20336 [2021-07505]
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Federal Register / Vol. 86, No. 73 / Monday, April 19, 2021 / Proposed Rules
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[FR Doc. 2021–07823 Filed 4–16–21; 8:45 am]
BILLING CODE 6450–01–P
BUREAU OF CONSUMER FINANCIAL
PROTECTION
12 CFR Part 1006
[Docket No. CFPB–2021–0007]
RIN 3170–AA41
Debt Collection Practices (Regulation
F); Delay of Effective Date
Bureau of Consumer Financial
Protection.
ACTION: Proposed rule; request for
public comment.
jbell on DSKJLSW7X2PROD with PROPOSALS
AGENCY:
In 2020, the Bureau of
Consumer Financial Protection (Bureau)
finalized two rules titled Debt
Collection Practices (Regulation F). The
rules revise Regulation F, which
SUMMARY:
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implements the Fair Debt Collection
Practices Act (FDCPA). Both final rules
have an effective date of November 30,
2021. The Bureau is proposing to extend
that effective date by 60 days, until
January 29, 2022.
DATES: Comments must be received on
or before May 19, 2021.
ADDRESSES: You may submit comments,
identified by Docket No. CFPB–2021–
0007 or RIN 3170–AA41, by any of the
following methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• Email: 2021-NPRMDCEffectiveDate@cfpb.gov. Include
Docket No. CFPB–2021–0007 or RIN
3170–AA41 in the subject line of the
message.
• Mail/Hand Delivery/Courier:
Comment Intake—Debt Collection
Effective Date, Bureau of Consumer
Financial Protection, 1700 G Street NW,
Washington, DC 20552.
Instructions: The Bureau encourages
the early submission of comments. All
submissions should include the agency
name and docket number or Regulatory
Information Number (RIN) for this
rulemaking. Because paper mail in the
Washington, DC, area and at the Bureau
is subject to delay, and in light of
difficulties associated with mail and
hand deliveries during the COVID–19
pandemic, commenters are encouraged
to submit comments electronically. In
general, all comments received will be
posted without change to https://
www.regulations.gov. In addition, once
the Bureau’s headquarters reopens,
comments will be available for public
inspection and copying at 1700 G Street
NW, Washington, DC 20552, on official
business days between the hours of 10
a.m. and 5 p.m. Eastern Time. You can
make an appointment to inspect the
documents by telephoning 202–435–
7275.
All comments, including attachments
and other supporting materials, will
become part of the public record and
subject to public disclosure. Proprietary
information or sensitive personal
information, such as account numbers
or Social Security numbers, or names of
other individuals, should not be
included. Comments will not be edited
to remove any identifying or contact
information.
FOR FURTHER INFORMATION CONTACT: Seth
Caffrey, Courtney Jean, or Kristin
McPartland, Senior Counsels, Office of
Regulations, at 202–435–7700. If you
require this document in an alternative
electronic format, please contact CFPB_
Accessibility@cfpb.gov.
SUPPLEMENTARY INFORMATION:
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I. Summary of the Proposed Rule
In October and December 2020, the
Bureau released final rules to revise
Regulation F, 12 CFR part 1006, which
implements the FDCPA (together, the
Debt Collection Final Rules). The Debt
Collection Final Rules prescribe Federal
rules governing the activities of debt
collectors, as that term is defined in the
FDCPA, and have an effective date of
November 30, 2021.1 In light of the
ongoing societal disruption caused by
the global COVID–19 pandemic, the
Bureau is proposing to extend that
effective date. To afford stakeholders
additional time to review and, if
applicable, to implement the Debt
Collection Final Rules, the Bureau is
proposing to extend the effective date by
60 days, to January 29, 2022. This
proposal requests comment on whether
the Bureau should extend the effective
date of the Debt Collection Final Rules,
and if so, whether 60 days is an
appropriate length of time for such an
extension.
II. Background
A. The Debt Collection Final Rules
The first debt collection final rule,
released on October 30, 2020, addresses,
among other topics, communications in
connection with debt collection and
prohibitions on harassment or abuse,
false or misleading representations, and
unfair practices in debt collection. The
first final rule also addresses the use of
newer communication technologies in
debt collection and establishes record
retention requirements.
The second debt collection final rule,
released on December 18, 2020, focuses
on debt collection disclosures and
addresses, among other topics, the
information that debt collectors must
provide consumers at the outset of
collections communications. The
second final rule also prohibits debt
collectors from bringing or threatening
to bring a legal action against a
consumer to collect a time-barred debt
and prohibits debt collectors from
furnishing information about a debt to a
consumer reporting agency before the
debt collector takes certain actions to
contact the consumer about the debt.
B. Proposed Effective Date
The Debt Collection Final Rules have
an effective date of November 30, 2021,
or one year after the first debt collection
final rule was published in the Federal
Register. In finalizing that effective date
for both final rules, the Bureau
concluded that all stakeholders would
1 85 FR 76734 (Nov. 30, 2020); 86 FR 5766 (Jan.
19, 2021).
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Federal Register / Vol. 86, No. 73 / Monday, April 19, 2021 / Proposed Rules
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benefit if both rules had the same
effective date, and the Bureau
determined that a one-year period from
the publication date of the first final
rule would provide debt collectors
sufficient time to implement the
provisions of both rules.2
Since the Debt Collection Final Rules
were published, the global COVID–19
pandemic has continued to cause
widespread societal disruption, with
effects extending into 2021. In light of
that disruption, the Bureau believes that
providing additional time for
stakeholders to review and, if
applicable, to implement the final rules
may be warranted. The Bureau believes
that extending the rules’ effective date
by 60 days, to January 29, 2022, may
provide stakeholders with sufficient
time for review and implementation.
The Bureau requests comment on
whether to extend the final rules’
effective date and, if so, whether 60
days is the appropriate amount of time
for an extension.
As noted in the Debt Collection Final
Rules, debt collectors could choose to
comply with the rules’ requirements
and prohibitions before the effective
date. Until the effective date, however,
the FDCPA and other applicable law
would continue to govern the conduct
of FDCPA debt collectors. Similarly, to
the extent that the Debt Collection Final
Rules establish a safe harbor from
liability for certain conduct, or a
presumption that certain conduct
complies with or violates the rules,
those safe harbors and presumptions
will not take effect until the effective
date. The Bureau requests comment on
whether it would facilitate
implementation to retain the November
30, 2021 effective date for some or all
of the safe harbors identified in the Debt
Collection Final Rules. The Bureau
requests comment on, for example, the
costs and benefits of permitting debt
collectors to obtain a safe harbor for
using the Bureau’s model validation
notice 3 as of November 30, 2021, even
if the Debt Collection Final Rules do not
otherwise take effect until January 29,
2022.
III. Legal Authority
To extend the effective date of the
Debt Collection Final Rules, the Bureau
is proposing to exercise its rulemaking
authority pursuant to FDCPA section
814(d) and Dodd-Frank Act sections
1022(b)(1) and 1032(a).
The legal authority for the Debt
Collection Final Rules is described in
2 85 FR 76734, 76863 (Nov. 30, 2020); 86 FR 5766,
5838 (Jan. 19, 2021).
3 86 FR 5766, 5857 (Jan. 19, 2021).
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16:42 Apr 16, 2021
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detail in those final rules.4 As amended
by the Dodd-Frank Act, FDCPA section
814(d) authorizes the Bureau to
‘‘prescribe rules with respect to the
collection of debts by debt collectors,’’
as defined in the FDCPA.5 Section
1032(a) of the Dodd-Frank Act provides
that the Bureau may prescribe rules to
ensure that the features of any consumer
financial product or service, both
initially and over the term of the
product or service, are fully, accurately,
and effectively disclosed to consumers
in a manner that permits consumers to
understand the costs, benefits, and risks
associated with the product or service,
in light of the facts and circumstances.6
Additionally, under Dodd-Frank Act
section 1022(b)(1), the Bureau has
general authority to prescribe rules as
may be necessary or appropriate to
enable the Bureau to administer and
carry out the purposes and objectives of
the Federal consumer financial laws,
and to prevent evasions thereof.7 The
FDCPA and title X of the Dodd-Frank
Act are Federal consumer financial
laws.8 Accordingly, in proposing this
rule, the Bureau is exercising its
authority under Dodd-Frank Act section
1022(b) 9 to prescribe rules under the
FDCPA and title X of the Dodd-Frank
Act that carry out the purposes and
objectives and prevent evasion of those
laws. Section 1022(b)(2) of the DoddFrank Act 10 prescribes certain
standards for rulemaking that the
Bureau must follow in exercising its
authority under section 1022(b)(1).
IV. Dodd-Frank Act Section 1022(b)
Analysis
In developing the proposed rule, the
Bureau has considered the potential
benefits, costs and impacts required by
section 1022(b)(2) of the Dodd-Frank
Act. Specifically, section 1022(b)(2)
calls for the Bureau to consider the
potential benefits and costs of a
regulation to consumers and covered
persons, including the potential
reduction of consumer access to
consumer financial products or services,
the impact on depository institutions
and credit unions with $10 billion or
less in total assets as described in
section 1026 of the Dodd-Frank Act, and
the impact on consumers in rural areas.
In addition, Dodd-Frank Act section
1022(b)(2)(B) 11 directs the Bureau to
4 85 FR 76734, 76739–41 (Nov. 30, 2020); 86 FR
5766, 5770–71 (Jan. 19, 2021).
5 15 U.S.C. 1692l(d).
6 12 U.S.C. 5532(a).
7 12 U.S.C. 5512(b)(1).
8 12 U.S.C. 5481(14).
9 12 U.S.C. 5512(b).
10 12 U.S.C. 5512(b)(2).
11 12 U.S.C. 5512(b)(2)(B).
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20335
consult, before and during the
rulemaking, with appropriate prudential
regulators or other Federal agencies,
regarding consistency with the
objectives those agencies administer. In
developing the proposed rule, the
Bureau has consulted, or offered to
consult with, the appropriate prudential
regulators and other Federal agencies,
including regarding consistency with
any prudential, market, or systemic
objectives administered by such
agencies.
The Bureau previously considered the
costs, benefits, and impacts of the Debt
Collection Final Rules’ major
provisions.12 Compared to the baseline
established by the rules,13 the proposed
extension of the rules’ effective date
would generally benefit covered persons
by facilitating initial compliance with
the rules’ requirements and delaying the
start of ongoing compliance costs.
Because covered persons retain the
option of complying with the rules
before the effective date, any extension
should not increase costs to covered
persons because they retain the option
of complying by the original effective
date. The Bureau believes that
extending the effective date may also
delay consumers’ realization of benefits
arising from the protections provided by
the rules, although given the short
length of the delay, any overall
reduction in benefits should be small. In
addition, the Bureau does not expect the
proposed rule to have a differential
impact on depository institutions and
credit unions with $10 billion or less in
total assets as described in section 1026
of the Dodd-Frank Act or on consumers
in rural areas. The Bureau does not
believe that the proposed effective date
extension would reduce consumer
access to consumer financial products
and services, as the evidence discussed
in the Debt Collection Final Rules
indicates that the rules themselves will
have limited negative impact on access
to credit.14
The Bureau requests comment on this
discussion as well as submission of
additional information that could
inform the Bureau’s consideration of the
potential benefits, costs, and impacts of
this proposed rule.
12 81
FR 83934, 84269 (Nov. 22, 2016).
Bureau has discretion in any rulemaking
to choose an appropriate scope of analysis with
respect to potential benefits, costs, and impacts and
an appropriate baseline.
14 See 85 FR 76734, 76879–81 (Nov. 30, 2020); 86
FR 5766, 5849 (Jan. 19, 2021).
13 The
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Federal Register / Vol. 86, No. 73 / Monday, April 19, 2021 / Proposed Rules
V. Initial Regulatory Flexibility Act
Analysis
The Regulatory Flexibility Act
(RFA),15 as amended by the Small
Business Regulatory Enforcement
Fairness Act of 1996,16 requires each
agency to consider the potential impact
of its regulations on small entities,
including small businesses, small
governmental units, and small not-forprofit organizations. The RFA defines a
‘‘small business’’ as a business that
meets the size standard developed by
the Small Business Administration
pursuant to the Small Business Act.17
The RFA generally requires an agency
to conduct an initial regulatory
flexibility analysis (IRFA) and a final
regulatory flexibility analysis (FRFA) of
any rule subject to notice-and-comment
rulemaking requirements, unless the
agency certifies that the rule would not
have a significant economic impact on
a substantial number of small entities.18
The Bureau also is subject to certain
additional procedures under the RFA
involving the convening of a panel to
consult with small business
representatives prior to proposing a rule
for which an IRFA is required.19
An IRFA is not required for this
proposed rule because the proposed
rule, if adopted, would not have a
significant economic impact on a
substantial number of small entities. As
discussed in part II, because covered
persons would retain the option of
complying by the Debt Collection Final
Rules’ original November 30, 2021
effective date, any extension of the
effective date would not increase costs
to covered persons. Thus, the Bureau
anticipates that the proposed rule would
only reduce burden on small entities
relative to the baseline.
Accordingly, the Acting Director
certifies that this proposed rule, if
adopted, would not have a significant
economic impact on a substantial
number of small entities. The Bureau
requests comment on its analysis of the
impact of the proposed rule on small
entities and requests any relevant data.
Office of Management and Budget
(OMB) for information collection
requirements. The collections of
information related to the Debt
Collection Final Rules is under review
by OMB in accordance with the PRA
and under OMB Control Number 3170–
0056. Under the PRA, the Bureau may
not conduct or sponsor, and,
notwithstanding any other provision of
law, a person is not required to respond
to, an information collection unless the
information collection displays a valid
control number assigned by OMB.
The Bureau has determined that this
proposed rule would not have any new
or revised information collection
requirements (recordkeeping, reporting,
or disclosure requirements) on covered
entities or members of the public that
would constitute collections of
information requiring OMB approval
under the PRA. The Bureau welcomes
comments on these determinations or
any other aspect of the proposal for
purposes of the PRA.
VI. Paperwork Reduction Act
Under the Paperwork Reduction Act
of 1995 (PRA),20 Federal agencies are
generally required to seek, prior to
implementation, approval from the
Airworthiness Directives; Leonardo
S.p.a. Helicopters
jbell on DSKJLSW7X2PROD with PROPOSALS
15 5
U.S.C. 601 et seq.
Law 104–121, tit. II, 110 Stat. 857
(1996).
17 5 U.S.C. 601(3) (the Bureau may establish an
alternative definition after consultation with the
Small Business Administration and an opportunity
for public comment).
18 5 U.S.C. 603–605.
19 5 U.S.C. 609.
20 44 U.S.C. 3501 et seq.
16 Public
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VII. Signing Authority
The Acting Director of the Bureau,
David Uejio, having reviewed and
approved this document, is delegating
the authority to electronically sign this
document to Grace Feola, a Bureau
Federal Register Liaison, for purposes of
publication in the Federal Register.
Dated: April 7, 2021.
Grace Feola,
Federal Register Liaison, Bureau of Consumer
Financial Protection.
[FR Doc. 2021–07505 Filed 4–16–21; 8:45 am]
BILLING CODE 4810–AM–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 39
[Docket No. FAA–2021–0302; Project
Identifier MCAI–2020–01596–R]
RIN 2120–AA64
Federal Aviation
Administration (FAA), DOT.
ACTION: Notice of proposed rulemaking
(NPRM).
AGENCY:
The FAA proposes to adopt a
new airworthiness directive (AD) for all
Leonardo S.p.a. Model AW189
helicopters. This proposed AD was
prompted by the identification of
misleading information in the
emergency procedure for the ‘‘1(2) FUEL
LOW’’ caution message. This proposed
SUMMARY:
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Fmt 4702
Sfmt 4702
AD would require revising the existing
Rotorcraft Flight Manual (RFM) for your
helicopter. The FAA is proposing this
AD to address the unsafe condition on
these products.
DATES: The FAA must receive comments
on this proposed AD by June 3, 2021.
ADDRESSES: You may send comments,
using the procedures found in 14 CFR
11.43 and 11.45, by any of the following
methods:
• Federal eRulemaking Portal: Go to
https://www.regulations.gov. Follow the
instructions for submitting comments.
• Fax: (202) 493–2251.
• Mail: U.S. Department of
Transportation, Docket Operations, M–
30, West Building Ground Floor, Room
W12–140, 1200 New Jersey Avenue SE,
Washington, DC 20590.
• Hand Delivery: Deliver to Mail
address between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal
holidays.
For service information identified in
this NPRM, contact Leonardo S.p.A.
Helicopters, Emanuele Bufano, Head of
Airworthiness, Viale G.Agusta 520,
21017 C.Costa di Samarate (Va) Italy;
telephone +39–0331–225074; fax +39–
0331–229046; or at https://
www.leonardocompany.com/en/home.
You may view this service information
at the FAA, Office of the Regional
Counsel, Southwest Region, 10101
Hillwood Pkwy., Room 6N–321, Fort
Worth, TX 76177. For information on
the availability of this material at the
FAA, call (817) 222–5110.
Examining the AD Docket
You may examine the AD docket at
https://www.regulations.gov by
searching for and locating Docket No.
FAA–2021–0302; or in person at Docket
Operations between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal
holidays. The AD docket contains this
NPRM, the European Union Aviation
Safety Agency (EASA) AD, any
comments received, and other
information. The street address for
Docket Operations is listed above.
FOR FURTHER INFORMATION CONTACT:
Mitch Soth, Flight Test Engineer,
Southwest Section, Flight Test Branch,
Compliance & Airworthiness Division,
FAA, 10101 Hillwood Pkwy., Fort
Worth, TX 76177; telephone (817) 222–
5110; email mitch.soth@faa.gov.
SUPPLEMENTARY INFORMATION:
Comments Invited
The FAA invites you to send any
written relevant data, views, or
arguments about this proposal. Send
your comments to an address listed
under ADDRESSES. Include ‘‘Docket No.
E:\FR\FM\19APP1.SGM
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]]>Agencies
[Federal Register Volume 86, Number 73 (Monday, April 19, 2021)]
[Proposed Rules]
[Pages 20334-20336]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-07505]
=======================================================================
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BUREAU OF CONSUMER FINANCIAL PROTECTION
12 CFR Part 1006
[Docket No. CFPB-2021-0007]
RIN 3170-AA41
Debt Collection Practices (Regulation F); Delay of Effective Date
AGENCY: Bureau of Consumer Financial Protection.
ACTION: Proposed rule; request for public comment.
-----------------------------------------------------------------------
SUMMARY: In 2020, the Bureau of Consumer Financial Protection (Bureau)
finalized two rules titled Debt Collection Practices (Regulation F).
The rules revise Regulation F, which implements the Fair Debt
Collection Practices Act (FDCPA). Both final rules have an effective
date of November 30, 2021. The Bureau is proposing to extend that
effective date by 60 days, until January 29, 2022.
DATES: Comments must be received on or before May 19, 2021.
ADDRESSES: You may submit comments, identified by Docket No. CFPB-2021-
0007 or RIN 3170-AA41, by any of the following methods:
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
Email: [email protected]. Include Docket
No. CFPB-2021-0007 or RIN 3170-AA41 in the subject line of the message.
Mail/Hand Delivery/Courier: Comment Intake--Debt
Collection Effective Date, Bureau of Consumer Financial Protection,
1700 G Street NW, Washington, DC 20552.
Instructions: The Bureau encourages the early submission of
comments. All submissions should include the agency name and docket
number or Regulatory Information Number (RIN) for this rulemaking.
Because paper mail in the Washington, DC, area and at the Bureau is
subject to delay, and in light of difficulties associated with mail and
hand deliveries during the COVID-19 pandemic, commenters are encouraged
to submit comments electronically. In general, all comments received
will be posted without change to https://www.regulations.gov. In
addition, once the Bureau's headquarters reopens, comments will be
available for public inspection and copying at 1700 G Street NW,
Washington, DC 20552, on official business days between the hours of 10
a.m. and 5 p.m. Eastern Time. You can make an appointment to inspect
the documents by telephoning 202-435-7275.
All comments, including attachments and other supporting materials,
will become part of the public record and subject to public disclosure.
Proprietary information or sensitive personal information, such as
account numbers or Social Security numbers, or names of other
individuals, should not be included. Comments will not be edited to
remove any identifying or contact information.
FOR FURTHER INFORMATION CONTACT: Seth Caffrey, Courtney Jean, or
Kristin McPartland, Senior Counsels, Office of Regulations, at 202-435-
7700. If you require this document in an alternative electronic format,
please contact [email protected].
SUPPLEMENTARY INFORMATION:
I. Summary of the Proposed Rule
In October and December 2020, the Bureau released final rules to
revise Regulation F, 12 CFR part 1006, which implements the FDCPA
(together, the Debt Collection Final Rules). The Debt Collection Final
Rules prescribe Federal rules governing the activities of debt
collectors, as that term is defined in the FDCPA, and have an effective
date of November 30, 2021.\1\ In light of the ongoing societal
disruption caused by the global COVID-19 pandemic, the Bureau is
proposing to extend that effective date. To afford stakeholders
additional time to review and, if applicable, to implement the Debt
Collection Final Rules, the Bureau is proposing to extend the effective
date by 60 days, to January 29, 2022. This proposal requests comment on
whether the Bureau should extend the effective date of the Debt
Collection Final Rules, and if so, whether 60 days is an appropriate
length of time for such an extension.
---------------------------------------------------------------------------
\1\ 85 FR 76734 (Nov. 30, 2020); 86 FR 5766 (Jan. 19, 2021).
---------------------------------------------------------------------------
II. Background
A. The Debt Collection Final Rules
The first debt collection final rule, released on October 30, 2020,
addresses, among other topics, communications in connection with debt
collection and prohibitions on harassment or abuse, false or misleading
representations, and unfair practices in debt collection. The first
final rule also addresses the use of newer communication technologies
in debt collection and establishes record retention requirements.
The second debt collection final rule, released on December 18,
2020, focuses on debt collection disclosures and addresses, among other
topics, the information that debt collectors must provide consumers at
the outset of collections communications. The second final rule also
prohibits debt collectors from bringing or threatening to bring a legal
action against a consumer to collect a time-barred debt and prohibits
debt collectors from furnishing information about a debt to a consumer
reporting agency before the debt collector takes certain actions to
contact the consumer about the debt.
B. Proposed Effective Date
The Debt Collection Final Rules have an effective date of November
30, 2021, or one year after the first debt collection final rule was
published in the Federal Register. In finalizing that effective date
for both final rules, the Bureau concluded that all stakeholders would
[[Page 20335]]
benefit if both rules had the same effective date, and the Bureau
determined that a one-year period from the publication date of the
first final rule would provide debt collectors sufficient time to
implement the provisions of both rules.\2\
---------------------------------------------------------------------------
\2\ 85 FR 76734, 76863 (Nov. 30, 2020); 86 FR 5766, 5838 (Jan.
19, 2021).
---------------------------------------------------------------------------
Since the Debt Collection Final Rules were published, the global
COVID-19 pandemic has continued to cause widespread societal
disruption, with effects extending into 2021. In light of that
disruption, the Bureau believes that providing additional time for
stakeholders to review and, if applicable, to implement the final rules
may be warranted. The Bureau believes that extending the rules'
effective date by 60 days, to January 29, 2022, may provide
stakeholders with sufficient time for review and implementation. The
Bureau requests comment on whether to extend the final rules' effective
date and, if so, whether 60 days is the appropriate amount of time for
an extension.
As noted in the Debt Collection Final Rules, debt collectors could
choose to comply with the rules' requirements and prohibitions before
the effective date. Until the effective date, however, the FDCPA and
other applicable law would continue to govern the conduct of FDCPA debt
collectors. Similarly, to the extent that the Debt Collection Final
Rules establish a safe harbor from liability for certain conduct, or a
presumption that certain conduct complies with or violates the rules,
those safe harbors and presumptions will not take effect until the
effective date. The Bureau requests comment on whether it would
facilitate implementation to retain the November 30, 2021 effective
date for some or all of the safe harbors identified in the Debt
Collection Final Rules. The Bureau requests comment on, for example,
the costs and benefits of permitting debt collectors to obtain a safe
harbor for using the Bureau's model validation notice \3\ as of
November 30, 2021, even if the Debt Collection Final Rules do not
otherwise take effect until January 29, 2022.
---------------------------------------------------------------------------
\3\ 86 FR 5766, 5857 (Jan. 19, 2021).
---------------------------------------------------------------------------
III. Legal Authority
To extend the effective date of the Debt Collection Final Rules,
the Bureau is proposing to exercise its rulemaking authority pursuant
to FDCPA section 814(d) and Dodd-Frank Act sections 1022(b)(1) and
1032(a).
The legal authority for the Debt Collection Final Rules is
described in detail in those final rules.\4\ As amended by the Dodd-
Frank Act, FDCPA section 814(d) authorizes the Bureau to ``prescribe
rules with respect to the collection of debts by debt collectors,'' as
defined in the FDCPA.\5\ Section 1032(a) of the Dodd-Frank Act provides
that the Bureau may prescribe rules to ensure that the features of any
consumer financial product or service, both initially and over the term
of the product or service, are fully, accurately, and effectively
disclosed to consumers in a manner that permits consumers to understand
the costs, benefits, and risks associated with the product or service,
in light of the facts and circumstances.\6\ Additionally, under Dodd-
Frank Act section 1022(b)(1), the Bureau has general authority to
prescribe rules as may be necessary or appropriate to enable the Bureau
to administer and carry out the purposes and objectives of the Federal
consumer financial laws, and to prevent evasions thereof.\7\ The FDCPA
and title X of the Dodd-Frank Act are Federal consumer financial
laws.\8\ Accordingly, in proposing this rule, the Bureau is exercising
its authority under Dodd-Frank Act section 1022(b) \9\ to prescribe
rules under the FDCPA and title X of the Dodd-Frank Act that carry out
the purposes and objectives and prevent evasion of those laws. Section
1022(b)(2) of the Dodd-Frank Act \10\ prescribes certain standards for
rulemaking that the Bureau must follow in exercising its authority
under section 1022(b)(1).
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\4\ 85 FR 76734, 76739-41 (Nov. 30, 2020); 86 FR 5766, 5770-71
(Jan. 19, 2021).
\5\ 15 U.S.C. 1692l(d).
\6\ 12 U.S.C. 5532(a).
\7\ 12 U.S.C. 5512(b)(1).
\8\ 12 U.S.C. 5481(14).
\9\ 12 U.S.C. 5512(b).
\10\ 12 U.S.C. 5512(b)(2).
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IV. Dodd-Frank Act Section 1022(b) Analysis
In developing the proposed rule, the Bureau has considered the
potential benefits, costs and impacts required by section 1022(b)(2) of
the Dodd-Frank Act. Specifically, section 1022(b)(2) calls for the
Bureau to consider the potential benefits and costs of a regulation to
consumers and covered persons, including the potential reduction of
consumer access to consumer financial products or services, the impact
on depository institutions and credit unions with $10 billion or less
in total assets as described in section 1026 of the Dodd-Frank Act, and
the impact on consumers in rural areas. In addition, Dodd-Frank Act
section 1022(b)(2)(B) \11\ directs the Bureau to consult, before and
during the rulemaking, with appropriate prudential regulators or other
Federal agencies, regarding consistency with the objectives those
agencies administer. In developing the proposed rule, the Bureau has
consulted, or offered to consult with, the appropriate prudential
regulators and other Federal agencies, including regarding consistency
with any prudential, market, or systemic objectives administered by
such agencies.
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\11\ 12 U.S.C. 5512(b)(2)(B).
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The Bureau previously considered the costs, benefits, and impacts
of the Debt Collection Final Rules' major provisions.\12\ Compared to
the baseline established by the rules,\13\ the proposed extension of
the rules' effective date would generally benefit covered persons by
facilitating initial compliance with the rules' requirements and
delaying the start of ongoing compliance costs. Because covered persons
retain the option of complying with the rules before the effective
date, any extension should not increase costs to covered persons
because they retain the option of complying by the original effective
date. The Bureau believes that extending the effective date may also
delay consumers' realization of benefits arising from the protections
provided by the rules, although given the short length of the delay,
any overall reduction in benefits should be small. In addition, the
Bureau does not expect the proposed rule to have a differential impact
on depository institutions and credit unions with $10 billion or less
in total assets as described in section 1026 of the Dodd-Frank Act or
on consumers in rural areas. The Bureau does not believe that the
proposed effective date extension would reduce consumer access to
consumer financial products and services, as the evidence discussed in
the Debt Collection Final Rules indicates that the rules themselves
will have limited negative impact on access to credit.\14\
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\12\ 81 FR 83934, 84269 (Nov. 22, 2016).
\13\ The Bureau has discretion in any rulemaking to choose an
appropriate scope of analysis with respect to potential benefits,
costs, and impacts and an appropriate baseline.
\14\ See 85 FR 76734, 76879-81 (Nov. 30, 2020); 86 FR 5766, 5849
(Jan. 19, 2021).
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The Bureau requests comment on this discussion as well as
submission of additional information that could inform the Bureau's
consideration of the potential benefits, costs, and impacts of this
proposed rule.
[[Page 20336]]
V. Initial Regulatory Flexibility Act Analysis
The Regulatory Flexibility Act (RFA),\15\ as amended by the Small
Business Regulatory Enforcement Fairness Act of 1996,\16\ requires each
agency to consider the potential impact of its regulations on small
entities, including small businesses, small governmental units, and
small not-for-profit organizations. The RFA defines a ``small
business'' as a business that meets the size standard developed by the
Small Business Administration pursuant to the Small Business Act.\17\
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\15\ 5 U.S.C. 601 et seq.
\16\ Public Law 104-121, tit. II, 110 Stat. 857 (1996).
\17\ 5 U.S.C. 601(3) (the Bureau may establish an alternative
definition after consultation with the Small Business Administration
and an opportunity for public comment).
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The RFA generally requires an agency to conduct an initial
regulatory flexibility analysis (IRFA) and a final regulatory
flexibility analysis (FRFA) of any rule subject to notice-and-comment
rulemaking requirements, unless the agency certifies that the rule
would not have a significant economic impact on a substantial number of
small entities.\18\ The Bureau also is subject to certain additional
procedures under the RFA involving the convening of a panel to consult
with small business representatives prior to proposing a rule for which
an IRFA is required.\19\
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\18\ 5 U.S.C. 603-605.
\19\ 5 U.S.C. 609.
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An IRFA is not required for this proposed rule because the proposed
rule, if adopted, would not have a significant economic impact on a
substantial number of small entities. As discussed in part II, because
covered persons would retain the option of complying by the Debt
Collection Final Rules' original November 30, 2021 effective date, any
extension of the effective date would not increase costs to covered
persons. Thus, the Bureau anticipates that the proposed rule would only
reduce burden on small entities relative to the baseline.
Accordingly, the Acting Director certifies that this proposed rule,
if adopted, would not have a significant economic impact on a
substantial number of small entities. The Bureau requests comment on
its analysis of the impact of the proposed rule on small entities and
requests any relevant data.
VI. Paperwork Reduction Act
Under the Paperwork Reduction Act of 1995 (PRA),\20\ Federal
agencies are generally required to seek, prior to implementation,
approval from the Office of Management and Budget (OMB) for information
collection requirements. The collections of information related to the
Debt Collection Final Rules is under review by OMB in accordance with
the PRA and under OMB Control Number 3170-0056. Under the PRA, the
Bureau may not conduct or sponsor, and, notwithstanding any other
provision of law, a person is not required to respond to, an
information collection unless the information collection displays a
valid control number assigned by OMB.
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\20\ 44 U.S.C. 3501 et seq.
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The Bureau has determined that this proposed rule would not have
any new or revised information collection requirements (recordkeeping,
reporting, or disclosure requirements) on covered entities or members
of the public that would constitute collections of information
requiring OMB approval under the PRA. The Bureau welcomes comments on
these determinations or any other aspect of the proposal for purposes
of the PRA.
VII. Signing Authority
The Acting Director of the Bureau, David Uejio, having reviewed and
approved this document, is delegating the authority to electronically
sign this document to Grace Feola, a Bureau Federal Register Liaison,
for purposes of publication in the Federal Register.
Dated: April 7, 2021.
Grace Feola,
Federal Register Liaison, Bureau of Consumer Financial Protection.
[FR Doc. 2021-07505 Filed 4-16-21; 8:45 am]
BILLING CODE 4810-AM-P
