If you’re a large servicer that’s subject to The Fair Debt Collection Practices Act (FDCPA), the CFPB made a last-minute adjustment to the servicing rules that will go into effect on October 19th. This interim Final Rule will relax the timing requirements for the modified written early intervention notice for certain borrowers protected by FDCPA.
In the 2016 Rule set to take effect on October 19th, §1024.39(d) requires a modified written early intervention notice to be provided to borrowers who have requested a stop in communication from servicers subject to FDCPA, unless a borrower is in bankruptcy or no loss mitigation option is available. However, it prohibits sending that notice, to borrowers protected under FDCPA, no more than once every 180 days.
Concerns were raised that if the notice could only be provided to these borrowers ON the 180th day after the previous notice had been provided, this would cause some challenges with weekends and holidays.
As a result, this interim Final Rule gives a 10-day window at the end of the 180-day period to give the modified notice. So, subsequent notices are required no more than 190 days after the prior notice.
This interim Final Rule is also effective October 19, 2017.
Diane joined Banker’s Compliance Consulting with over 10 years of compliance experience and over 15 years of experience within the financial industry. Diane is a Certified Regulatory Compliance Manager (CRCM) and has a Bachelor’s Degree in Sociology with a concentration in Criminal Justice. She is a graduate of the Schools of Banking Compliance School and has participated in various other training opportunities throughout her career. Diane understands firsthand the struggles banks face in building and maintaining successful compliance programs. Her experience and common sense approach to consumer compliance is a great asset to our clients.
Diane and her husband have two kids who keep them busy. She enjoys running and other sports and is a big Bugs Bunny fan! She’s a bit crazy in that she does enjoy reading some of these regulations and she’s a “crazy cat lady!” Her cat tales are hilarious!