Is your rent due?
Is your rent due? Well, good news and bad news. Effective May 3rd, 2021, debt collectors seeking to get you evicted will temporarily be unable to do so; thanks to the IFR (Interim Final Rule) issued by the CFPB (Consumer Financial Protection Bureau) in support of the CDC’s residential eviction memorandum.
In response to the CDC’s memorandum (which declared that the forceful eviction of tenants from their apartments of residence could pose a public health menace to the increasing reduction of the spread of the COVID-19 virus), the CFPB has issued a new rule that requires debt collectors to notify you of your rights under the CDC’s new order and prevents them from lying to you about your eligibility for protection from eviction in a bid to get you to repay your debts.
The CFPB put this rule in place to ensure that consumers like you remain fully aware of their rights, and that debt collectors do not take advantage of this ignorance to exploit an already difficult financial situation.
Furthermore, the CFPB declared that the failure to disclose a consumer’s rights under the CDC’s residential eviction memorandum to that consumer can amount to a violation of the FDCPA (Fair Debt Collections Practices Act).
What steps must Debt Collection Agencies now follow when contacting you?
During the period that the order is effective, debt collectors contacting you over the repayment of a mortgage or rental debt must notify you “clearly and conspicuously” of your rights to protection under the CDC’s residential eviction memorandum. This notice should be in the form of a written document.
The debt collector is not permitted to falsely represent a situation of urgency or to imply that you are not eligible for temporary protection under the CDC’s residential eviction memorandum.
The debt collector must not file an eviction action against you while the memorandum is in order without the aforementioned written document notifying you of your rights. The written disclosure must be provided on the same day as the eviction notice.
It is equally important to note that the CDC’s residential eviction memorandum does not apply to states or any other territories that already have a temporary ban on residential evictions to curb the current public health crisis. In such states, the CFPB’s IFR does NOT require debt collectors to comply with its new rules (mentioned in the bullet points above).
These states are:
4. District of Columbia
10. New Jersey (for two emergency months)
11. New Mexico
12. New York
13. North Carolina
What happens if a debt collector violates these rules?
If these rules have been violated by a debt collector, you may be entitled to actual and statutory damages of up to $1000 for an individual lawsuit, and $500,000 or 1% of the debt collector’s net worth for class action cases.
What to do if a debt collector has failed to notify you of the CDC’s residential eviction memorandum
If a debt collector has failed to notify you of the CDC’s residential eviction memorandum, your best chance is to get a qualified consumer rights attorney on the case immediately.
A consumer rights attorney will take the issue up with the debt collector, and what’s more, is that you do not have to pay a dime in consultation or attorney fees. Yes, you read that right.
If you are able to prove a case of violation/misrepresentation, the offending collection agency will pay you compensation in addition to settling all your attorney fees and costs.
Call us now at 877-700-5790 if you have mortgage or rent due and were unlawfully served an eviction notice between the 3rd of May till date; we can help.
Coronavirus mortgage forbearance end date
The Covid-19 mortgage relief program finally came to an end on the 31st of July, 2021, after several extensions.
In view of the many Americans who might still be unable to make mortgage payments, the forbearance enrollment window has also been extended to September 30th, 2021, with an additional three months during which homeowners may be granted forbearance extension.
Nevertheless, September is upon us, and if you have your mortgage or rent due, you need to start putting solid plans in place before you get taken by surprise.
Mortgage assistance options
- Full repayment: As the name implies, this means that you make a lump payment comprising all the payments you have missed.
- Intermittent payments: If you opt for this strategy, you get to repay your missed payments over a period of 3-12 months in addition to the amount you have due in monthly payments.
- Mortgage deferment: Here, your loan servicer agrees to move all your missed payments to the end when all your loan is paid off in full.
- Review your loan agreement: Contact your loan servicer to find out if you can review the terms of the loan to arrive at a more favorable interest rate or monthly payment rate.
- Talk to a debt collection attorney: If you have your rent due or you are financially equipped enough to repay your mortgage and are getting harassed by barraging calls from debt collectors, then speaking with a debt collection is a solution that might help. Our team of dedicated professionals is always available to provide you with support and fight fiercely on your behalf. Call us now at 877-700-5790.