BREAKING: CFPB Confirms Reg F Will Take Effect on November 30, 2021

On April 7, 2021, the CFPB issued a Noticed of proposed Rule Making (NPRM), which proposed delaying the effective date of the Debt Collection Rules (Reg F) for 60 days. The CFPB issued a press release today indicating the effective date will not be delayed; Reg F will go into effect on November 30, 2021, as planned.

The CFPB determined that an extension of the effective date was unnecessary since most public comments did not support it; most industry commenters stated that they would be prepared to comply with the rules by November 30, 2021. While consumer advocates supported extending the effective date, they did not focus on whether additional time was needed for implementation. Instead, the advocates' comments sought an extension to allow for a reconsideration of Reg F.  The CFPB noted that reconsideration of the rules was beyond the scope of the NPRM and could raise concerns under the Administrative Procedure Act.

That said, the CFPB expressly stated that nothing in today’s decision would prohibit them from reconsidering Reg F at a later date. The CFPB will consider additional guidance for debt collectors, including those servicing mortgage loans, as necessary and will publish a formal notice in the Federal Register withdrawing the April 2021 proposal.

insideARM Perspective:

Many in the accounts receivable industry were worried that if the CFPB extended the effective date of Reg F, it would use that time to reconsider the rules. It’s nice to see that although the CFPB received comments urging for reconsideration, the bureau is followed appropriate procedures and did not consider anything outside the scope of the NPRM. With this decision, those in the accounts receivable industry should feel some relief that their implementation plans will not be upended without warning.

When we first reported the NPRM, we cautioned accounts receivable entities to proceed as if November 30, 2021would remain the effective date since the NPRM was only a proposal. We hope everyone continued with their implementation strategies and will be ready to go by November 30^th.

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