Photo: Andrés Correa Guatarasma / Courtesy
The Consumer Financial Protection Bureau (CFPB) released a rule that directs debt collectors to inform tenants of their rights under a federal eviction ban rent during the pandemic.
The rule would mandate that any third party debt collector, including attorneys, to try to collect the rent owed on behalf of the landlord , tell the owners of the landlord tenants who may be protected from eviction under the CDC’s moratorium on eviction.
Debt collectors would have to . inform tenants about their rights under the prohibition of CDC no later than when the tenant receives an eviction notice.
President Joe Biden extended CDC’s eviction ban to the end of June, millions of households are still struggling to find their financial base amid the coronavirus pandemic.
While housing advocates have praised Biden for extending the Trump-era ban, they have also criticized the administration for not repairing the various existing holes on the issue .
Owners who violate the prohibition may face a fine of $ 200, 000 and one year in jail , none have faced federal charges for going ahead with the evictions despite the order.
So far, the federal district courts of Ohio and Texas have also ruled against CDC’s order, but remains in effect pending appeals.
The CFPB rule, which will go into effect May 3, would try to stop thousands of evictions of tenants a ban that could otherwise go ahead.
The CFPB estimated in December that 9 million households could face eviction once the CDC order expires, and African American and Hispanic households are at the highest risk.
Therefore, the CFPB was considering further action on the evictions and cited the agency’s agreement to work with the Federal Trade Commission for enforcing the CDC ban .
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