H.R. 5001 would classify some businesses engaged in nonjudicial foreclosure proceedings as debt collectors under the Fair Debt Collection Practices Act (FDCPA). (Nonjudicial proceedings allow foreclosures on delinquent mortgages to occur without court supervision.) By classifying such businesses as debt collectors, H.R. 5001 would require them to comply with all applicable provisions of the FDCPA.
The Federal Trade Commission (FTC) is primarily responsible for enforcing violations of the FDCPA. Using information from the FTC, CBO estimates that the agency would spend less than $500,000 over the 2020-2025 period to enforce additional violations under the amended statute; such spending would be subject to the availability of appropriated funds.
The Consumer Financial Protection Bureau (CFPB) is authorized to implement the FDCPA through regulation. Using information from the CFPB, CBO estimates that it would cost the bureau less than $500,000 to update FDCPA regulations. The CFPB has permanent authority, not subject to annual appropriation, to spend amounts transferred from the Federal Reserve.
The bill would impose private-sector and intergovernmental mandates as defined in the Unfunded Mandates Reform Act (UMRA). CBO cannot determine whether the cost of the private-sector mandates would exceed the threshold established in UMRA ($168 million in 2020, adjusted annually for inflation). CBO estimates the cost to comply with the intergovernmental mandates would not exceed the threshold established in UMRA ($84 million in 2020, adjusted annually for inflation).