CFPB/FTC Issue Joint Letter to Apartment Landlords
Letter is a Reminder About New Notice Requirement Staring May 3
On Monday, May 3, the Consumer Financial Protection Bureau and the Federal Trade Commission sent a JOINT LETTER to apartment landlords and management companies reminding them that the CFPB’s interim final rule which came into force on May 3, 2021. The interim final rule requires debt collectors seeking to evict certain tenants for non-payment of rent must provide those tenants with clear and conspicuous notice that the consumer may be eligible for temporary protection from eviction under the CDC Moratorium. In a PRESS RELEASE, the CFPB notes that the “prohibition applies to an agent or attorney acting on behalf of a landlord or owner of the residential property.
The CFPB/FTC letter points out that “[t]he notice must be provided 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. Debt collectors must provide the notice in writing. Phone calls or electronic notice such as text messages or emails are not sufficient.” The letter also notes that “violators can be held liable for actual damages, statutory damages, and attorney’s fees.”
The letter provides examples of notice language that would comply with the new requirements. Below is and English and Spanish versions of one of these examples. You are strongly encouraged to read the JOINT LETTER in its entirety and consult with your legal counsel to determine what steps you must take to comply with this new notice requirement.