Struggling Renters Protected By New CFPB Rulehttps://bardolawpc.com/wp-content/uploads/2017/05/HomeownersRightsChicago-ConsumerLawGroup.jpg 750 500 StacyBardo StacyBardo https://bardolawpc.com/wp-content/uploads/2015/09/LinkedIn-StacyBardo-BardoLawPC-150x150.jpg
The Consumer Financial Protection Bureau (CFPB) just added new rules to protect struggling renters. Effective May 3, 2021, debt collectors must advise renters of their rights in eviction actions. With nearly 9 million households behind on rent due to COVID-19, there is still need for greater eviction protections.
Debt collectors were always prohibited from misrepresenting their tenants’ eligibility for eviction protection. Now, however, they need to affirmatively disclose any right to seek temporary eviction protection. The debt collector must make the disclosure in writing, either with the eviction notice or lawsuit, and the disclosure must be clear and conspicuous.
Non-compliant debt collectors can be liable for up to $1,000 in statutory damages plus actual damages and attorney’s fees for failing to comply with the new rules. If you have been served an eviction notice without notice of these rights, contact our office today.