WASHINGTON—The nation’s largest apartment landlords, which collectively own more than two million units, are being cautioned over any evictions by the CFPB and the FTC.
In a letter from CFPB Acting Director Dave Uejio and FTC Acting Chairwoman Rebecca Kelly Slaughter, landlords were reminded of federal protections in place to keep tenants in their homes and stop the spread of COVID-19. The Centers for Disease Control and Prevention (CDC) has extended until June 30 a temporary moratorium on evictions for non-payment of rent, and the CFPB has issued an interim final rule, which takes effect today, establishing new notice requirements under the Fair Debt Collection Practices Act (FDCPA).
“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,” said Uejio. “We will hold accountable debt collectors who move forward with illegal evictions.”
Added Slaughter, “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. We are continuing to monitor this area and will act as needed to protect renters.”
Landlords Urged to Examine Practices
In a statement, the CFPB said, “The notification letters are the latest public action by the CFPB and the FTC in support of the CDC moratorium. The CDC order generally prohibits landlords from evicting tenants for non-payment of rent, if the tenant submits a written declaration that she is unable to afford full rental payments and would likely become homeless or have to move into a shared living setting if evicted. This prohibition applies to an agent or attorney acting on behalf of a landlord or owner of the residential property.”
The letters ask landlords to examine their practices to ensure they comply with the CDC Moratorium and the FTC Act and remediate any harm to consumers stemming from any such law violations. The letters also encourage landlords to notify FDCPA-covered debt collectors working on their behalf, which may include attorneys, of the CDC moratorium, applicable state or local moratoria, and those parties’ obligations under the FTC Act and FDCPA, including the CFPB’s interim final rule.
Written Notice Required
The interim final rule requires debt collectors to provide written notice to tenants who may have rights under the CDC moratorium and prohibits them from misrepresenting tenants’ ineligibility for protection from eviction under the CDC moratorium.
Neither the CFPB nor the FTC has determined whether the letters’ recipients have violated the law, the CFPB said.