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Eugene

(61,592 posts)
Mon Apr 19, 2021, 07:31 PM Apr 2021

U.S. debt collectors must tell delinquent renters about eviction protections

Source: Reuters

WASHINGTON (Reuters) - Debt collectors pursuing Americans for overdue rent must tell them in writing about their rights under a nationwide eviction ban, the U.S. Consumer Financial Protection Bureau (CFPB) said on Monday.

The new interim final rule takes effect on May 3 and seeks to make sure tenants know about protections against eviction under a nationwide moratorium issued by the Centers for Disease Control and Prevention (CDC). That measure, introduced to limit the spread of COVID-19, has been extended to June 30.

"Tens of thousands of tenants and families are being evicted every week, many of whom would have had the right to stay in their home," CFPB Acting Director Dave Uejio told reporters. "The scale of that is hard to wrap your head around."

To forestall eviction, renters must file declarations saying they would become homeless or be forced into a "shared living setting." And they must attest they have done all they can to get government assistance for rent or housing.

-snip-

Mon, April 19, 2021, 3:46 PM·2 min read
By Katanga Johnson



Read more: https://news.yahoo.com/u-debt-collectors-must-tell-194633740.html

10 replies = new reply since forum marked as read
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forthemiddle

(1,373 posts)
1. What happens when the moratorium ends?
Mon Apr 19, 2021, 07:42 PM
Apr 2021

The debts don’t go away, and when the moratorium ends, all that back rent will be due in full.

PSPS

(13,512 posts)
3. Unsecured debts will, indeed, just "go away." That's why they're call "unsecured."
Mon Apr 19, 2021, 10:50 PM
Apr 2021

Landlords and others will just have to take a hit or get assistance from the federal government. A global pandemic has undesirable effects that can't be undone like there was never a pandemic. I find it kind of frightening that so many people are still in the denial stage over a year later.

 

Hugh_Lebowski

(33,643 posts)
4. Doubt it just goes away in the sense that probably many 10's of 1000's will get booted
Tue Apr 20, 2021, 02:51 AM
Apr 2021

from their home when the moratorium ends. Many will be sued and I'd guess will often lose in court. Many will then have an eviction on their credit report, making it harder to get housing in the future. If they lose in court they may get their wages garnished and more credit damage from a judgment/lien against them.

I don't think I'm wrong in thinking this could be really f***ed up.

But maybe there's more to the moratorium than I entirely understand.

oldsoftie

(12,410 posts)
5. Small landlords cant put an eviction on anyones credit report.
Tue Apr 20, 2021, 05:29 AM
Apr 2021

And you can win in court, I always do, but good luck getting anything from them.

TexasBushwhacker

(20,043 posts)
6. However, the bottom line is that landlords need tenants
Tue Apr 20, 2021, 09:10 AM
Apr 2021

Unless it's an area that has 98% occupancy, having a lot of vacant units is a liability. If there is any possibility of working something out with tenants behind on their rent, the landlords are better off doing that.

I have a coworker who was renting a small old house in a small town outside Houston. Her roommate moved out 6 months ago and she hasn't been able to find another one. She asked the landlady if she wanted her to move out, but LL told her she'd rather have half than nothing.

 

marie999

(3,334 posts)
9. Unsecured debts do not just "go away".
Tue Apr 20, 2021, 03:38 PM
Apr 2021

To make them go away you have to file for bankruptcy otherwise your income can be garnished. The only people who are definitely safe are people on Social Security and Va disability plus some pensions. If you work, a certain amount of your take-home pay can be garnished.

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