CFPB Advisory Opinion on Fair Debt Collection Practices Takes Effect

The CFPB advisory opinion on unfair debt collection practices became effective July 5, 2022.

As previously covered, the CFPB clarified terms under Section 808 of the Fair Debt Collection Practice Act ("FDCPA"). In the opinion, the CFPB highlighted that (i) the FDCPA's proscription of ''collect[ing] . . . any amount (including any interest, fee, charge, or expense incidental to the principal obligation)'' extended to a "convenience fee"; and (ii) the term "permitted by law" refers to situations in which "some law expressly permits the charge [in fee collection], even if the agreement creating the debt is silent." The CFPB noted that the advisory opinion does not create or revise any current recordkeeping, disclosure or reporting requirements.