Debt Collection Practices (Regulation F); Withdrawal of Proposal To Delay Effective Date, 48918 [2021-18799]

Agencies

• BUREAU OF CONSUMER FINANCIAL PROTECTION

[Federal Register Volume 86, Number 167 (Wednesday, September 1, 2021)]
[Proposed Rules]
[Page 48918]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-18799]


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Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

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Federal Register / Vol. 86, No. 167 / Wednesday, September 1, 2021 / 
Proposed Rules

[[Page 48918]]



BUREAU OF CONSUMER FINANCIAL PROTECTION

12 CFR Part 1006

[Docket No. CFPB-2021-0007]
RIN 3170-AA41


Debt Collection Practices (Regulation F); Withdrawal of Proposal 
To Delay Effective Date

AGENCY: Bureau of Consumer Financial Protection.

ACTION: Proposed rule; withdrawal.

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SUMMARY: In 2020, the Bureau of Consumer Financial Protection (Bureau) 
finalized two rules (together, the Debt Collection Final Rules) 
revising Regulation F, which implements the Fair Debt Collection 
Practices Act (FDCPA). As finalized, the Debt Collection Final Rules 
had an effective date of November 30, 2021. On April 7, 2021, the 
Bureau issued a proposal to delay that effective date by sixty days, 
until January 29, 2022. The Bureau is withdrawing that proposal for the 
reasons provided in this document. The Debt Collection Final Rules will 
take effect on November 30, 2021.

DATES: The proposed rule, published at 86 FR 20334, April 19, 2021, is 
withdrawn as of September 1, 2021.

FOR FURTHER INFORMATION CONTACT: Briana McLeod, Honors Attorney, or 
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: In October and December 2020, the Bureau 
issued the Debt Collection Final Rules to revise Regulation F, 12 CFR 
part 1006, which implements the FDCPA.\1\ The Debt Collection Final 
Rules prescribe Federal rules governing the activities of debt 
collectors as defined in the FDCPA. As finalized, the Debt Collection 
Final Rules had an effective date of November 30, 2021, one year after 
the first debt collection final rule was published in the Federal 
Register. In finalizing the effective date for both final rules, 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\
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    \1\ 85 FR 76734 (Nov. 30, 2020); 86 FR 5766 (Jan. 19, 2021).
    \2\ 85 FR 76734, 76863 (Nov. 30, 2020); 86 FR 5766, 5838 (Jan. 
19, 2021).
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    Because of the ongoing societal disruption caused by the global 
COVID-19 pandemic, and to afford stakeholders additional time to review 
and implement the Debt Collection Final Rules, the Bureau proposed in 
April 2021 to extend the November 30 effective date by 60 days, to 
January 29, 2022.\3\ The Bureau requested comment on whether to extend 
the effective date, and if so, whether 60 days was an appropriate 
period for an extension.
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    \3\ 86 FR 20334 (Apr. 19, 2021). The April 2021 proposal 
described the Bureau's legal authority for issuing both that 
proposal and the Debt Collection Final Rules. Id. at 20335.
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    Most industry commenters stated that, despite the pandemic, they 
will be prepared to comply with the Debt Collection Final Rules by 
November 30, 2021. Many industry commenters also stated that an 
extension would reduce regulatory certainty and thus increase burden on 
small entities. Consumer advocate commenters generally supported 
extending the effective date. However, these commenters generally did 
not focus on the effects of the COVID-19 pandemic or on whether 
stakeholders need additional time to review and implement the Rules. 
Instead, they urged the Bureau to use the extension to reconsider the 
Debt Collection Final Rules. However, extending the effective date to 
reconsider the rules is beyond the scope of the Bureau's proposal. For 
these reasons, the Bureau has decided to withdraw the proposal. The 
Debt Collection Final Rules will take effect on November 30, 2021.
    The April 2021 proposal explained that the Bureau previously 
considered the costs, benefits, and impacts of the Debt Collection 
Final Rules' major provisions. It further explained that, compared to 
the baseline established by the rules, 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 but that it could also 
delay consumers' realization of benefits arising from the protections 
provided by the rules. As discussed above, industry commenters 
generally did not agree that delaying the effective date would 
facilitate compliance. In addition, the Bureau indicated that it did 
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 also stated that it did 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. Because this document withdraws the proposal to change the 
effective date, any costs and benefits associated with an extension 
will not be realized. Further, there are no additional costs, benefits, 
or impacts associated with this document beyond those previously 
considered with respect to the Debt Collection Final Rules' major 
provisions. The Bureau has determined that this document will 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 Paperwork Reduction Act of 1995.\4\
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    \4\ 44 U.S.C. 3501 et seq.
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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 Laura Galban, a Bureau Federal Register Liaison, 
for purposes of publication in the Federal Register.

    Dated: August 26, 2021.
Laura Galban,
Federal Register Liaison, Bureau of Consumer Financial Protection.
[FR Doc. 2021-18799 Filed 8-31-21; 8:45 am]
BILLING CODE 4810-AM-P