A bill has been introduced in the House of Representatives to amend the Fair Debt Collection Practices Act in order to include additional information when sending the validation notice while also expanding the requirements before filing collection lawsuits.
What It Is: H.R. 8196, the Securing Consumers Against Misrepresented (SCAM) Debt Act was introduced last week by Rep. Suzanne Bonamici [D-Ore.] and co-sponsored by Rep. Bill Foster [D-Ill.] and Rep. Steve Cohen [D-Tenn.].
What It Does: When sending a validation notice, collectors would have to include:
- The name of the original creditor and, if different, the creditor who currently owns the debt and the creditor on the most recent date of default.
- The most recent date of default, the amount of the debt on the most recent date of default, the interest accrued on the most recent date of default, the total fees charged as of the most recent date of default, the amount of any payments on the debt since the most recent date of default, and the total amount of the debt currently owed.
- The account number of the debt on the most recent date of default
- All methods that the consumer may use to contact the debt collector.
Consumers would also be able to dispute debts using any method of contact that is available to them.
Collectors would also have to notify consumers at least 30 days before filing a collection lawsuit. Collectors would also have to include more information in their initial pleading.
- All of the information required in validation notices, excluding information that would be personally identifiable and dispute procedures;
- The last four digits of the account number on the most recent date of default;
- Attached as admissible documentary evidence showing:
- The written agreement, contract, or instrument creating the debt, if any, or other documents showing that the consumer agreed to the agreement, contract, or instrument creating the debt
- Any terms and conditions relevant to the debt o That the consumer incurred the debt and the amount owed
- That there is a chain of title of the ownership of debt and the right to collect the debt, including documents showing the date of each transfer of ownership of the debt and the identity of each owner of the debt
- A sworn affidavit stating:
- That the applicable statute of limitations for collecting the debt has not expired and the date on which such statute of limitations expires
- That the debt collector personally reviewed all applicable records and documents relating to the debt to be collected.
Oops: This is not the first time that Rep. Bonamici has attempted to introduce this legislation. She forgot to update the section-by-section guide about the bill so it says that what was introduced was the Securing Consumers Against Misrepresented Debt Act of 2021 not 2024.
