CLARK BARS UPDATE - APRIL 22nd 2021
Clark & Walker, P.C. - Attorneys at Law
Date: April 22, 2021
COVID-19 - CFPB RULE CHANGE AFFECTION ISSUANCE OF NON-PAYMENT OF RENT NOTICES IN ARIZONA
On April 19, 2021 the Consumer Financial Protection Bureau issued an
Interim Final Rule on Fair Debt Collection Practices Act concerning tenants and the CDC Order that was recently extended through June 30, 2021. The Interim Final Rule is due to take effect on May 3, 2021.
Under the interim Final Rule, debt collectors, including attorneys, seeking to evict tenants for non-payment of rent must provide tenants who may have rights under the CDC order with clear and conspicuous written notice of those rights. The notice must be provided on the same date as the eviction notice, or, if no eviction notice is required by law, on the date that the eviction action is filed. Pursuant to the Interim Final Rule, failure to provide the required notice to tenants is a violation of the FDCPA. The FDCPA provides a private right of action against debt collectors, and violators can be held liable for actual damages, statutory damages, and attorney’s fees. Class actions may be brought under the FDCPA.
The Interim Final Rule provided for two potential disclosures that landlords and their attorneys should use:
1. Because of the global COVID-19 pandemic, you may be eligible for temporary protection from eviction under Federal law.
• Learn the steps you should take now:
• Visit
www.cfpb.gov/eviction or call a housing counselor at 800-569-4287; or
2. Because of the global COVID-19 pandemic, you may be eligible for temporary protection from eviction under the laws of your State, territory, locality, or tribal area, or under Federal law.
• Learn the steps you should take now:
• Visit
www.cfpb.gov/eviction Or call a housing counselor at 800-569-4287.
Given the changes to the eviction processes in Arizona and the rules implemented by the Court that arguably extend the CDC Order’s protections the Firm recommends that you use sample 2 in your non-payment of rent notices and your non-renewal notices. If you issue a material non compliance notice seeking the tenant to pay any sum you should also include the sample language in example 2 above. The Firm’s forms have all been modified and have been marked as the CFPB Version. We recommend that all clients use these forms going forward until otherwise notified by the Firm.
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