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US HR4403

US HR4403
Stop Debt Collection Abuse Act of 2019


summary

Introduced
09/19/2019
In Committee
11/14/2019
Crossed Over
Passed
Dead
12/31/2020

Introduced Session

116th Congress

Bill Summary

To amend the Fair Debt Collection Practices Act to restrict the debt collection practices of certain debt collectors. This bill applies certain consumer protections regarding debt collection to debt owed to a federal agency and to debt buyers. A federal agency that is a creditor may not sell or transfer a debt to a debt collector until 90 days after the obligation becomes delinquent or defaults. Specified notice to the consumer of such a sale or transfer is required. A collector of debt owed to a federal agency may not collect any interest, fee, charge, or expense that is (1) unreasonable in relation to actual costs, (2) not authorized by a contract between the debt collector and the federal agency, or (3) greater than 10% of the amount collected. The Government Accountability Office must report on the use of debt collectors by federal, state, and local government agencies.

AI Summary

This bill, the Stop Debt Collection Abuse Act of 2019, amends the Fair Debt Collection Practices Act to restrict the debt collection practices of certain debt collectors. The bill applies consumer protections regarding debt collection to debt owed to a federal agency and to debt buyers. It requires federal agencies to wait 90 days before transferring or selling delinquent debt to a debt collector, and to provide consumers with multiple notices before doing so. The bill also limits the fees and interest that debt collectors can charge on debt owed to federal agencies, requiring that such charges be reasonable, authorized by contract, and not exceed 10% of the amount collected. Additionally, the bill requires the Government Accountability Office to study and report on the use of debt collectors by federal, state, and local government agencies.

Committee Categories

Business and Industry

Sponsors (2)

Last Action

Placed on the Union Calendar, Calendar No. 538. (on 12/15/2020)

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