Consumer Financial Protection Bureau (CFPB) Acting Director Dave Uejio and Federal Trade Commission (FTC) Acting Chair Rebecca Kelly Slaughter are reminding the nation’s largest apartment landlords that federal protections remain in place to keep tenants in their homes and stop the spread of COVID-19.
Specifically, the Centers for Disease Control and Prevention (CDC) has extended until June 30 a temporary moratorium on evictions for non-payment of rent. The CDC order prohibits landlords from evicting tenants for non-payment of rent if the tenant submits that they cannot afford full rental payments and would likely become homeless or have to move into a shared living setting if evicted.
In turn, the CFPB issued an interim final rule establishing new notice requirements under the Fair Debt Collection Practices Act (FDCPA). The CFPB’s interim final rule requires debt collectors to provide written notice to tenants who may have rights under the CDC moratorium. Also, it prohibits them from misrepresenting tenants’ ineligibility for protection from eviction under the CDC moratorium.
“Landlords should ensure that FDCPA-covered debt collectors working on their behalf, which may include attorneys, notify tenants of their rights under federal law. Nearly nine million households are at risk of eviction due to the economic effects of COVID-19, but no one should lose their home without understanding their rights,” Uejio said. “We will hold accountable debt collectors who move forward with illegal evictions.”
The letters ask landlords to ensure they comply with the CDC Moratorium and the FTC Act and remediate any harm to consumers stemming from any such law violations.
“With millions of families nationwide at risk of eviction, it’s vital that landlords and the debt collectors who work on their behalf understand and abide by their obligations,” Slaughter said. “We are continuing to monitor this area and will act as needed to protect renters.”