The House of Representatives appears to be gearing up to vote on a number of bills, including a package of proposed legislation that would address how debts are collected across the country, and ACA International has started an effort to mobilize the industry encouraging members of Congress to vote no on the measure.
A published media report last week indicated that Rep. Steny Hoyer [D-Md.], the Majority Leader in the House of Representatives is planning a number of votes this month, including one that would “reform debt collection practices.”
The bill in question is H.R. 2547, called the Comprehensive Debt Collection Improvement Act. It includes eight different bills that have been introduced in Congress this session:
- Small Business Lending Fairness Act
- Fair Debt Collection Practices for Servicemembers Act
- Private Loan Disability Discharge Act of 2021
- Consumer Protection for Medical Debt Collections Act
- Ending Debt Collection Harassment Act of 2021
- Stop Debt Collection Abuse Act of 2021
- Debt Collection Practices Harmonization Act
- Non-Judicial Foreclosure Debt Collection Clarification Act
A full copy of the text of the bill is available by clicking here.
Among some of the provisions of the bills are:
- Prohibiting collectors from threatening to have a servicemember demoted for not paying a debt, having the servicemember’s security clearance revoked, or threatening prosecution under the Uniform Code of Military Justice.
- Discharging any private student loan in the event a student becomes permanently disabled or dies.
- Creating a two-year waiting period for attempting to collect on an unpaid medical debt while also notifying consumers prior to furnishing information about unpaid medical debts to credit reporting agencies.
- Requiring consumers’ consent before attempting to contact them via email or text messaging.
- Regulating collection practices for collectors hired by federal agencies.
- Increasing the penalties collectors can face when found to have violated the Fair Debt Collection Practices Act.
To fight against the passage of the bill, ACA International is asking those in the accounts receivable management industry to write letters to members of the House indicating why the bill would be bad for the industry, and for consumers. “If creditors cannot collect, they will be forced to not lend, and consumers — who much of this legislation is supposedly aimed at protecting — will end up being harmed the most, particularly those with fewer options for credit,” ACA’s letter template says.
About the debt collection bill, Rep. Hoyer said in a letter to fellow lawmakers that “Its measures would also strengthen protections for small business lending, safeguard military servicemembers from unfair debt collection, assist borrowers with student and medical debt, and prevent harassment and abuse,” Hoyer wrote.
