The CFPB yesterday said it would extend until August 4 the comment deadline for its proposal on time-barred debt disclosures. This supplemental proposal addresses the collection of time-barred debt, which is debt that has run past any applicable statute of limitations. It would require debt collectors to make certain disclosures if the collector knows or should know that a debt is time-barred.
The proposed rule would also require that debt collectors disclose, if applicable, that a payment made on a debt can revive the statute of limitations and enable the collector to sue to collect. This is the second extension the CFPB has granted on the proposal. For more information, or to join ABA’s comment letter working group, contact ABA's Diana Banks.