The Consumer Financial Protection Bureau (CFPB) has issued an interim final rule (IFR) in connection with the coronavirus pandemic. This rule applies to debt collectors as defined in the Fair Debt Collection Practices Act (FDCPA) and will be effective on May 3rd, 2021.
On March 29, 2021, the Center for Disease Control (CDC) extended the nationwide eviction moratorium through at least June 30, 2021. The CDC order (Temporary Halt in Residential Evictions to Prevent the Further Spread of COVID–19, 86 FR 16731) “generally prohibits a landlord, owner of a residential property, or other person with a legal right to pursue eviction (including an agent or attorney acting on behalf of a landlord or owner) from evicting any covered person from any residential property for non-payment of rent in any jurisdiction in which the Order applies during the effective period of the Order.”
The CFPB “is concerned that consumers are not aware of their protections under the CDC Order’s eviction moratorium and that FDCPA-covered debt collectors may be engaging in eviction-related conduct that violates the FDCPA.”
Impact to Landlords
To address its concerns, the new CFPB interim final rule (IFR) requires landlords to take the following, critical action in non-payment cases:
- properly disclose the tenant’s options in writing
- use the specific language required under the Fair Debt Collection Practices Act (FDCPA)
- accurately attach the disclosures to the eviction notice when serving the notice to tenants
If you fail to follow these requirements, our office will not be able to file an eviction for non-payment for you on or after May 3rd, 2021 when the new Fair Debt Collection Practices Act (FDCPA) rule is in effect, and you will be required to re-serve your tenants with a proper notice that contains the required disclosure.
Fast Facts: 2021 Debt Collection COVID-19 Interim Final Rule: https://files.consumerfinance.gov/f/documents/cfpb_fast-facts_debt_collection-eviction-ifr_2021-04.pdf
KSN can assist Illinois landlords by preparing the appropriate termination notices for your property in compliance with federal, state, and local legislation including Executive Orders and the CARES Act. Our attorneys will work to avoid possible dismissal of your eviction cases and further delays in removing non-covered tenants.
Our law firm will continue to monitor the ongoing changes with the eviction process and their impact on landlords and rental property managers. If you would like to speak to one of our attorneys, KSN can be reached by calling 855-537-0500 or by visiting ksnlaw.com.
Since 1983, KSN has been a legal resource for landlords, property managers, and property owners. We have four office locations, serving hundreds of clients and thousands of communities throughout Illinois, Indiana, and Wisconsin. Our attorneys are also licensed in Arizona, Florida, and Missouri.
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