In March 2020, the Consumer Financial Protection Bureau (“CFPB” or “Bureau”) issued a supplemental debt collection rulemaking to propose disclosures for consumers when debt collectors attempt to collect a time-barred debt. These proposals do not protect vulnerable consumers from abusive practices associated with the collection of time-barred debts, but instead provide cover for continued abusive collection of time-barred debts.
The only way to truly protect consumers from abusive practices in connection with the collection of time-barred debt is to prohibit this collection activity entirely. Disclosures will not adequately protect vulnerable consumers who will not understand why they are being contacted about a debt that is too old to sue on, or how making a small payment or acknowledgment could end up reviving the statute of limitations on a debt.