Newsroom

As the Centers for Disease Control and Prevention (CDC) Monday extended its Public Health Service Act order to halt residential evictions through June 30, the CFPB and Federal Trade Commission (FTC) announced that they are investigating potentially illegal eviction practices.

The CDC issued the order last year and has extended it several times to help prevent the spread of COVID-19. Federal housing agencies have also extended their foreclosure and eviction moratoriums through June 30.

The CFPB and FTC indicated they will focus their monitoring and investigations of eviction practices on major multistate landlords, eviction management services, and private equity firms.

"Unfortunately, there are reports that major multistate landlords are forcing people out of their homes despite the government prohibitions or before tenants are aware of their rights," the agencies said in a release. "Depriving tenants of their rights is unacceptable. Many of the tenants at risk of eviction are older Americans and people of color, who already experience heightened risks from COVID-19.

"…Evicting tenants in violation of the CDC, state, or local moratoria, or evicting or threatening to evict them without apprising them of their legal rights under such moratoria, may violate prohibitions against deceptive and unfair practices, including under the Fair Debt Collection Practices Act and the Federal Trade Commission Act. We will not tolerate illegal practices that displace families and expose them—and by extension all of us—to grave health risks."

Earlier this month, the CFPB released a report on housing insecurity, which found nearly 10 percent of U.S. households could face eviction and foreclosure when COVID-related relief provisions expire in the coming months.

NAFCU will continue to monitor legislative and regulatory efforts to support consumers, the housing market, and financial institutions amid the coronavirus pandemic. Access NAFCU's new resource on the American Rescue Plan Act to learn more about provisions to provide assistance to homeowners and renters.