CFPB Rule Clarifies Tenants Can Hold Debt Collectors Accountable for Illegal Evictions

The CFPB has issued a final rule extending the temporary eviction moratorium ordered by the CDC through June 30, 2021. This rule prohibits landlords from “evicting tenants for non-payment of rent, if the tenant submits a written declaration that they are unable to afford full rental payments and would likely become homeless or have to move into a shared living setting.”

If a debt collectors seeks to evict tenants for non-payment of rent, they must provide written notice to tenants “who may have rights under the CDC order with clear and conspicuous written notice of those rights.” Provision of notice must be given “on the same date as the eviction notice, or, if no eviction notice is required by law, on the date that the eviction action is filed.”

Any party who fails to provide tenants with this required notice may be subject to a private right of action or class action.

If you have any questions or concerns about this recent ruling, please reach out to us via email or phone.