According to a recent CFPB report, the pandemic has caused more than 8.8 million consumers to fall behind on their rent. The majority of tenants at risk of homelessness are people of color, primarily black and Hispanic families. Federal, state and local governments, including the Centers for Disease Control and Prevention (CDC), have temporarily halted evictions for nonpayment of rent — a measure that has proven helpful in stemming the spread of COVID-19. If you work in the housing sector, you will want to read the joint statement on this topic from FTC Acting Chairman Slaughter and CFPB Acting Director Uejio.
The CDC just announced it is extending the moratorium on evictions for nonpayment of rent by 90 days and has issued a moratorium on eviction proceedings for eligible tenants. Therefore, you may receive a form from the CDC from your tenant. The U.S. Federal Trade Commission (FTC) provides more information about this process, including links to sample statements.
For businesses, the important message from Acting Chairman Slaughter and Acting Director Uejio is that the FTC and CFPB staff will monitor evictions, particularly those by major multi-state landlords, eviction management services agencies, and private equity firms, to Ensure businesses comply with the law. Evicting tenants in violation of a CDC, state, or local moratorium, or evicting or threatening to evict them without informing them of their legal rights under the moratorium, may violate provisions prohibiting deceptive and unfair practices, including the Fair Debt Act Collection Practices Act and the Fair Debt Collection Practices Act. Federal Trade Commission Act. Complying with these standards is an important step in protecting consumers and public health.
The Federal Trade Commission (FTC) provides additional advice for consumers and small businesses dealing with the crisis Financial impact of COVID-19.
