09/07/2021 | News release | Distributed by Public on 09/07/2021 14:45
Black Knight Delivers Informative White Paper and MSP® Servicing System Enhancements to Help Clients Prepare
New debt collection regulations are on the horizon that will impact collection practices for Black Knight's servicing clients that qualify as 'debt collectors' under the new Consumer Financial Protection Bureau (CFPB) rules. The CFPB recently proposed amendments to Reg F (12 CFR §1006), which implements the Fair Debt Collection Practices Act (FDCPA) originally established in 1977 by Congress. The FDCPA establishes specific consumer protections to regulate communications between debt collectors and consumers. Harassment or abuse, false or misleading representations, and unfair practices are prohibited.
On Nov. 30, 2021, two new rules will go into effect: the November 2020 Debt Collection Rule and the January 2021 Debt Collection Rule. Black Knight is currently working with MSP® loan servicing system clients to leverage both existing functionality and new enhancements to prepare for the new FDCPA Rules.
About the FDCPA Rules
The November 2020 Debt Collection Rule
This rule addresses how, when and where debt collectors can communicate with consumers about the collection of their debts.
The January 2021 Debt Collection Rule
The January 2021 Debt Collection Rule requires debt collectors to provide consumers with oral or written validationinformation about the debt and an explanation of the consumer's rights. It also identifies actions that must be taken before a debt collector may report information to the credit reporting agencies and provides a prohibition on suits regarding time-barred debt.
How Can Mortgage Servicers Prepare?
Black Knight is working with its MSP loan servicing system clients and enhancing the platform to support the new FDCPA Rules. We have also developed an informative white paper with detailed steps to guide servicers through preparatory efforts. We encourage our servicing clients to review their debt collection processes and systems to make the necessary updates to support FDCPA compliance. The CFPB has stated that being 'unprepared is unacceptable,' so it is important to be ready when the new rules are established to avoid financial penalties and negative publicity due to non-compliance.
Download Black Knight's Complimentary White Paper: Prepare Now for the Fair Debt Collection Practices Act
If you require assistance preparing for the new FDCPA Rules, contact Black Knight.