CFPB Issues Second Comment Deadline Extension for on Out-of-Statute Debt Proposal


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Comments on model disclosures and validation notices, among other topics, are now due Aug. 4.

5/19/2020 11:30

The Consumer Financial Protection Bureau will provide an additional 60 days for the public and industry stakeholders to comment on its Supplemental Notice of Proposed Rulemaking (SNPRM) on out-of-statute debt disclosures. 

Comments are now due Aug. 4, 2020.

The CFPB previously extended the deadline from May 4 to June 5.

According to a news release from the CFPB announcing the second extension, it is “intended to allow all interested parties with additional time to comment on the rulemaking as a result of the impact of the COVID-19 pandemic.”

The CFPB announced additional proposed disclosure requirements for out-of-statute debt in the SNPRM released in March, ACA previously reported.

Out-of-statute debt was the subject of many comments to the CFPB after the release of its May 2019 proposed FDCPA rule for the debt collection industry, including from ACA.

The CFPB conducted research and testing on consumer disclosures related to time-barred debt that were not included in the May 2019 proposed rule for the industry.

The Aug. 4 extension will allow members and industry professionals to continue to have adequate time to provide public comment on the SNPRM and ACA appreciates the response from the CFPB.

Feedback on the CFPB’s proposed rulemaking for the industry remains a top advocacy priority for ACA, and members can participate in advocacy and learn more in the June 3 Washington Insights Livestream. Register today to join us and advocate across the miles.

Small-Dollar Lending Rule

Meanwhile, Kraninger and the CFPB are proceeding with other rulemakings. According to a report from Morning Consult Kraninger, in a letter to U.S. Sen. Sherrod Brown, D-Ohio, is moving forward with a revised rule for the small-dollar lending industry.

Brown, U.S. Sen. Elizabeth Warren, D-Mass., and additional Senate Democrats previously asked the CFPB to halt its work on revising the rule because of its changes to the provision on determining consumers’ ability to repay, according to the article.

For more information on how the ACA Licensing staff can assist with your licensing needs, please contact us at [email protected] or call (952) 926-6547.

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