Skip to content
BOL Conferences
Thread Options
#2245029 - 11/03/20 05:35 PM FDCPA Final Rule - Applicable to Banks?
hsbs Offline
Junior Member
Joined: Feb 2020
Posts: 26
Hello BOL Family,

This week CFPB released its final rule on Reg F / FDCPA (Fair Debt Collection Practices Act). I am trying to have a better understanding of how the rule applies to our bank.

We will be offering an unsecured personal loan product soon. While the loans will remain in our books, we will have a third-party originate and service these loans for us. In turn, this third-party will have another company handle the collections/loss mitigation loans.

As far as this final FDCPA rule goes, does it apply to this scenario? Does the party that will handle servicing of our loans need to follow this rule? Does the collections agency they work with need to follow this rule? I am trying to get ahead of my due diligence here, and want to see how others are interpreting this new rule, and how it will affect us.

Thank you for your input.

Return to Top
#2245033 - 11/03/20 06:01 PM Re: FDCPA Final Rule - Applicable to Banks? hsbs
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,219
Galveston, TX
Does the party that will handle servicing of our loans need to follow this rule?

Yes

Does the collections agency they work with need to follow this rule?

Yes
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2245051 - 11/03/20 08:01 PM Re: FDCPA Final Rule - Applicable to Banks? hsbs
Dan Persfull Online
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
The definition of a Debt Collector and the exclusions are found at 1006.2(2)(i).
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#2245349 - 11/10/20 03:26 PM Re: FDCPA Final Rule - Applicable to Banks? hsbs
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
And, since you are dealing with third parties who are subject to the rule in their roles, you have to ensure that those third parties will comply with the rule when it's effective. Of course, since the FDCPA has itself been in effect for years, you should be ensuring their compliance with the law now.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top