Bill

Bill > S2516


US S2516

US S2516
Stop Debt Collection Abuse Act of 2019


summary

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

Introduced Session

116th Congress

Bill Summary

A bill 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 arises. 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 shall report on the use of debt collectors by federal, state, and local government agencies.

AI Summary

This bill amends the Fair Debt Collection Practices Act to restrict the debt collection practices of certain debt collectors. It applies certain consumer protections regarding debt collection to debt owed to a federal agency and to debt buyers. The bill requires that a federal agency wait at least 90 days before selling or transferring a debt to a debt collector and provides specific notice requirements to the consumer about such a sale or transfer. It also limits the fees and interest that a debt collector can charge when collecting debt owed to a federal agency. 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

Housing and Urban Affairs

Sponsors (2)

Last Action

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (on 09/19/2019)

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