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.