Debt Collection Practices (Regulation F); Corrections, 65668-65670 [2022-23559]

Agencies

• BUREAU OF CONSUMER FINANCIAL PROTECTION

[Federal Register Volume 87, Number 210 (Tuesday, November 1, 2022)]
[Rules and Regulations]
[Pages 65668-65670]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-23559]


=======================================================================
-----------------------------------------------------------------------

BUREAU OF CONSUMER FINANCIAL PROTECTION

12 CFR Part 1006

[Docket No. CFPB-2019-0022]
RIN 3170-AA41


Debt Collection Practices (Regulation F); Corrections

AGENCY: Bureau of Consumer Financial Protection.

ACTION: Final rule; official interpretation; correcting amendments.

-----------------------------------------------------------------------

SUMMARY: The Consumer Financial Protection Bureau (CFPB) published 
``Debt Collection Practices (Regulation F)'' on January 19, 2021, to 
revise Regulation F, which implements the Fair Debt Collection 
Practices Act. Omissions in that document resulted in certain 
paragraphs in the Official Interpretations (Commentary) not being 
incorporated into the Code of Federal Regulations (CFR). This document 
corrects the Official Interpretations to Regulation F by adding the 
missing paragraphs to the CFR.

DATES: The corrections are effective on November 1, 2022.

FOR FURTHER INFORMATION CONTACT: 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. Background

    The CFPB is issuing this document to correct two comments in the 
CFPB's Commentary to Regulation F, which implements the Fair Debt 
Collection Practices Act (FDCPA).\1\ In the final rule titled, ``Debt 
Collection Practices (Regulation F)'' (January 2021 Final Rule), 
published in the Federal Register on January 19, 2021 (86 FR 5766), the 
CFPB included paragraph 3 under heading 30(a)(1) In general and 
paragraph 3 under heading 38--

[[Page 65669]]

Disputes and Requests for Original-Creditor Information in its 
commentary text for the rule, but omitted the related amendatory 
instruction to add those specific paragraphs to the Commentary. In 
addition, paragraph 2 under heading 38 was unintentionally omitted.\2\ 
These omissions were a scrivener's error. The CFPB is issuing this 
correction to ensure that these paragraphs are incorporated into the 
Commentary published in the CFR and to correct several typographical 
errors in the comments themselves. To comply with Office of the Federal 
Register requirements for amending commentary, this document re-prints 
in their entirety both subsections of commentary in which the missing 
paragraphs should have appeared.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 1692 et seq.
    \2\ Paragraph 2 under heading 38--Disputes and Requests for 
Original-Creditor Information was included in the final rule titled, 
``Debt Collection Practices (Regulation F),'' published in the 
Federal Register on November 30, 2020 (85 FR 76734). To comply with 
Office of Federal Register requirements for amending commentary, 
that paragraph also should have been included in the commentary text 
for the January 2021 Final Rule.
---------------------------------------------------------------------------

II. Regulatory Requirements

    The CFPB finds that public comment on this correction is 
unnecessary because the CFPB is correcting inadvertent, technical 
errors, about which there is no basis for substantive disagreement. 
Because no notice of proposed rulemaking is required, the Regulatory 
Flexibility Act does not require an initial or final regulatory 
flexibility analysis. The CFPB has determined that these corrections do 
not impose any new or revise any existing recordkeeping, reporting, or 
disclosure requirements on covered entities or members of the public 
that would be collections of information requiring Office of Management 
and Budget approval under the Paperwork Reduction Act.

List of Subjects in 12 CFR Part 1006

    Administrative practice and procedure, Consumer protection, Credit, 
Debt collection, Intergovernmental relations.

Authority and Issuance

    For the reasons set forth in the preamble, the CFPB amends 
Regulation F, 12 CFR part 1006, as set forth below:

PART 1006--DEBT COLLECTION PRACTICES (REGULATION F)

0
1. The authority citation for part 1006 continues to read as follows:

    Authority:  12 U.S.C. 5512, 5514(B), 5532; 15 U.S.C. 1692L(D), 
1692O, 7004.

0
2. In Supplement I to Part 1006--Official Interpretations:
0
a. Under Section 1006.30--Other Prohibited Practices, 30(a) Required 
actions prior to furnishing information, 30(a)(1) In general is 
revised.
0
b. Under Section 1006.38--Disputes and Requests for Original-Creditor 
Information, the introductory text before 38(a) Definitions is revised.
    The revisions read as follows:

Supplement I to Part 1006--Official Interpretations

* * * * *

Subpart B--Rules for FDCPA Debt Collectors

* * * * *

Section 1006.30--Other Prohibited Practices

30(a) Required actions prior to furnishing information

30(a)(1) In general

    1. About the debt. Section 1006.30(a)(1) provides, in relevant 
part, that a debt collector must not furnish to a consumer reporting 
agency, as defined in section 603(f) of the Fair Credit Reporting Act 
(15 U.S.C. 1681a(f)), information about a debt before taking one of the 
actions described in Sec.  1006.30(a)(1)(i) or (ii). Each of the 
actions includes conveying information ``about the debt'' to the 
consumer. The validation information required by Sec.  1006.34(c), 
including such information if provided in a validation notice, is 
information ``about the debt.''
    2. Reasonable period of time. Section 1006.30(a)(1)(ii) provides, 
in relevant part, that a debt collector who places a letter about a 
debt in the mail, or who sends an electronic message about a debt to 
the consumer, must wait a reasonable period of time to receive a notice 
of undeliverability before furnishing information about the debt to a 
consumer reporting agency. The reasonable period of time begins on the 
date that the debt collector places the letter in the mail or sends the 
electronic message. A period of 14 consecutive days after the date that 
the debt collector places a letter in the mail or sends an electronic 
message is a reasonable period of time.
    3. Notices of undeliverability. Section 1006.30(a)(1)(ii) provides, 
in relevant part, that, if a debt collector who places a letter about a 
debt in the mail, or who sends an electronic message about a debt to 
the consumer, receives a notice of undeliverability during the 
reasonable period of time, the debt collector must not furnish 
information about the debt to a consumer reporting agency until the 
debt collector otherwise satisfies Sec.  1006.30(a)(1). A debt 
collector who does not receive a notice of undeliverability during the 
reasonable period and who thereafter furnishes information about the 
debt to a consumer reporting agency does not violate Sec.  
1006.30(a)(1) even if the debt collector subsequently receives a notice 
of undeliverability. The following examples illustrate the rule:
    i. Assume that, on May 1, a debt collector mails the consumer a 
validation notice as described in Sec.  1006.34(a)(1)(i)(A). On May 10, 
the debt collector receives a notice of undeliverability and, without 
taking any additional action described in Sec.  1006.30(a)(1), 
subsequently furnishes information about the debt to a consumer 
reporting agency. The debt collector has violated Sec.  1006.30(a)(1).
    ii. Assume that, on May 1, a debt collector mails the consumer a 
validation notice as described in Sec.  1006.34(a)(1)(i)(A). On May 10, 
the debt collector receives a notice of undeliverability. On May 11, 
the debt collector mails the consumer another validation notice as 
described in Sec.  1006.34(a)(1)(i)(A). From May 11 to May 24, the debt 
collector permits receipt of, monitors for, and does not receive, a 
notice of undeliverability and thereafter furnishes information about 
the debt to a consumer reporting agency. The debt collector has not 
violated Sec.  1006.30(a)(1).
    iii. Assume that, on May 1, a debt collector mails the consumer a 
validation notice as described in Sec.  1006.34(a)(1)(i)(A). From May 1 
to May 14, the debt collector permits receipt of, monitors for, and 
does not receive, a notice of undeliverability and thereafter furnishes 
information about the debt to a consumer reporting agency. After 
furnishing the information, the debt collector receives a notice of 
undeliverability. The debt collector has not violated Sec.  
1006.30(a)(1) and, without taking any further action, may furnish 
additional information about the debt to a consumer reporting agency.
* * * * *

Section 1006.38--Disputes and Requests for Original-Creditor 
Information

    1. In writing. Section 1006.38 contains requirements related to a 
dispute or request for the name and address of the original creditor 
timely submitted in writing by the consumer. A consumer has disputed 
the debt or requested the name and address of the original creditor in 
writing for purposes of Sec.  1006.38(c) or (d)(2) if the consumer, for 
example:
    i. Mails the written dispute or request to the debt collector;

[[Page 65670]]

    ii. Returns to the debt collector the consumer-response form that 
Sec.  1006.34(c)(4) requires to appear on the validation notice and 
indicates on the form the dispute or request;
    iii. Provides the dispute or request to the debt collector using a 
medium of electronic communication through which the debt collector 
accepts electronic communications from consumers, such as an email 
address or a website portal; or
    iv. Delivers the written dispute or request in person or by courier 
to the debt collector.
    2. Interpretation of the E-SIGN Act. Comment 38-1.iii constitutes 
the Bureau's interpretation of section 101 of the E-SIGN Act as applied 
to section 809(b) of the FDCPA. Under this interpretation, section 
101(a) of the E-SIGN Act enables a consumer to satisfy through an 
electronic request the requirement in section 809(b) of the FDCPA that 
the consumer's notification of the debt collector be ``in writing.'' 
Further, because the consumer may only use a medium of electronic 
communication through which a debt collector accepts electronic 
communications from consumers, section 101(b) of the E-SIGN Act is not 
contravened.
    3. Deceased consumers. If the debt collector knows or should know 
that the consumer is deceased, and if the consumer has not previously 
disputed the debt or requested the name and address of the original 
creditor, a person who is authorized to act on behalf of the deceased 
consumer's estate operates as the consumer for purposes of Sec.  
1006.38. In such circumstances, to comply with Sec.  1006.38(c) or 
(d)(2), respectively, a debt collector must respond to a request for 
the name and address of the original creditor or to a dispute timely 
submitted in writing by a person who is authorized to act on behalf of 
the deceased consumer's estate.
* * * * *

Dani Zylberberg,
Counsel and Federal Register Liaison, Consumer Financial Protection 
Bureau.
[FR Doc. 2022-23559 Filed 10-31-22; 8:45 am]
BILLING CODE 4810-AM-P