The CFPB recently updated its FAQs on the Reg F debt collection rule, including information about the model validation notice, electronic communication, and more. ACA will regularly feature updates on the FAQs when available from the CFPB.
02/21/2023 3:40 P.M.
2 minute read
The Consumer Financial Protection Bureau has published Debt Collection Rule FAQs for Regulation F, containing questions and answers that pertain to compliance with the rule. The FAQs cover electronic communications, limited-content messages, the model validation notice (MVN) and more.
ACA International regularly highlights the bureau’s updates to the FAQs. Read on to learn about guidelines related to the MVN.
- Is use of the model validation notice required?
- No. The debt collection rule does not require a debt collector to use the model validation notice provided in Appendix B of the rule. Instead, the rule requires compliance with the validation information content and format requirements in Regulation F. 12 CFR Section 1006.34(d)(2); see also 12 CFR Sections 1006.34(c) and 34(d)(1). The MVN provides one way to comply with those requirements.
There are other ways to comply with the rule’s validation information content and format requirements. A debt collector may choose to format a validation notice differently than the MVN. For example, the rule does not require a tabular format for the itemization-related information, and other layouts or formats may comply with the rule. However, if a debt collector makes changes to the content or format of the MVN such that the notice is not substantially similar to the MVN, the debt collector generally will not obtain the rule’s safe harbor for the validation information content and format requirements. 12 CFR Section 1006.34(d)(2); see also 12 CFR Sections 1006.34(c) and 34(d)(1). For more information on the rule’s validation information content and format requirements, see Section 12 of the Debt Collection Small Entity Compliance Guide and Debt Collection Validation Information Question 4.
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