CFPB FDCPA – Who is excluded from the coverage of the debt collection rule?

Compliance > FDCPA
Q:   Who is excluded from the coverage of the debt collection rule?
 
A:   A person is excluded from coverage under the Debt Collection Rule if the person is one or more of the following:

1. An officer or employee of a creditor while the officer or employee is collecting debts for the creditor in the creditor’s name.

2. A person while acting as a debt collector for another person if:
a. The person acting as a debt collector does so only for persons with whom the person acting as a debt collector is related by common ownership or affiliated by corporate control; and
b. The principal business of the person acting as a debt collector is not the collection of debts.
 
3. An officer or employee of the United States or any state to the extent that collecting or attempting to collect any debt is in the performance of the officer’s or employee’s official duties.
 
4. A person while serving or attempting to serve legal process on any other person in connection with the judicial enforcement of any debt.
 
5. A nonprofit organization that, at the request of consumers, performs bona fide consumer credit counseling and assists consumers in liquidating their debts by receiving payment from such consumers and distributing such amounts to creditors.
 
6. A person collecting or attempting to collect any debt owed or due, or asserted to be owed or due to another, to the extent such debt collection activity:
a. Is incidental to a bona fide fiduciary obligation or a bona fide escrow arrangement;
b. Concerns a debt that such person originated;
c. Concerns a debt that was not in default at the time such person obtained it; or
d. Concerns a debt that such person obtained as a secured party in a commercial credit transaction involving the creditor.
 
7. A private entity, to the extent such private entity is operating a bad check enforcement program that complies with section 818 of the FDCPA.
 
8. A motor vehicle dealer excluded from coverage by section 1029(a) of the Dodd-Frank Act, 12 U.S.C. 5519(a). However, any such motor vehicle dealers who are FDCPA debt collectors still need to comply with the FDCPA.
 
12 CFR 1006.1(c), 1006.2(i)(2), and 1006.2(k)
 
 
This Q&A was created based on information from the CFPB’s Debt Collection Rule Small Entity Compliance Guide - April 2021 (which may be updated from time to time).  This may be found on the CFPB’s website here:  https://files.consumerfinance.gov/f/documents/cfpb_debt-collection_small-entity-compliance-guide.pdf
 

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