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#2245029 - 11/03/20 05:35 PM FDCPA Final Rule - Applicable to Banks?
hsbs Offline
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Joined: Feb 2020
Posts: 19
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.

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#2245033 - 11/03/20 06:01 PM Re: FDCPA Final Rule - Applicable to Banks? hsbs
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 76,433
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
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#2245051 - 11/03/20 08:01 PM Re: FDCPA Final Rule - Applicable to Banks? hsbs
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 46,287
Bloomington, IN
The definition of a Debt Collector and the exclusions are found at 1006.2(2)(i).
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The opinions expressed are mine and they are not to be taken as legal advice.

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#2245349 - 11/10/20 03:26 PM Re: FDCPA Final Rule - Applicable to Banks? hsbs
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,157
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.
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John S. Burnett
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Fighting for Compliance since 1976
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