A CFPB-proposed rule requiring debt collectors to make certain disclosures when collecting time-barred debts was published in the Federal Register. This notice of proposed rulemaking supplements the CFPB's May 2019 proposal to amend Regulation F, which implements the "Fair Debt Collection Practices Act."

As previously covered, the supplemental proposed rule would:

  • impose disclosure requirements on debt collectors attempting to collect "time-barred debt" (i.e., debts for which the relevant state of limitations has expired); and

  • prohibit debt collectors from using non-litigation means (e.g., phone calls) unless they disclose during initial contact with consumers (and on any required validation notice) that the debt is time-barred.

In addition, the CFPB is proposing model language and forms that debt collectors may use to comply with the proposed disclosure requirements.

Comments on the supplemental proposal must be submitted by May 4, 2020.