Debt Collectors Face CFPB Penalties for Eviction Ban Violations

April 19, 2021, 9:00 PM

Debt collectors and law firms that take steps to remove tenants without providing notice of their rights under a federal evictions moratorium would face federal and state prosecution under new regulations from the Consumer Financial Protection Bureau.

The bureau on Monday issued an interim final rule requiring debt collectors, including law firms and third-party collectors, to provide tenants with written notice about their rights under a Centers for Disease Control eviction moratorium that began in September.

Collectors that don’t provide notice or mislead tenants about their rights when starting the evictions process would be in violation of the Fair Debt...

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