summary
Introduced
07/27/2020
07/27/2020
In Committee
07/27/2020
07/27/2020
Crossed Over
Passed
Dead
12/31/2020
12/31/2020
Introduced Session
116th Congress
Bill Summary
To amend the Fair Debt Collection Practices Act to restrict collections of consumer debt during a national disaster or emergency, and for other purposes. This bill places restrictions on the collection of consumer debts during the COVID-19 (i.e., coronavirus disease 2019) emergency period and for 120 days after this period. Among other things, debt collectors may not during this period enforce a security interest through a repossession, seize assets, commence or continue an eviction, terminate utility service, or charge fees or apply a higher interest rate as a result of nonpayment. After this period, debt collectors must provide certain repayment options including extending the repayment period for debts. The bill also provides for forbearance programs established by creditors for consumers experiencing a financial hardship due to COVID-19. The Federal Reserve Board must establish a credit facility to make long-term, low-cost loans to these creditors for losses caused by any forbearance of payments.
AI Summary
This bill, the Consumer Relief during COVID-19 Act, places restrictions on the collection of consumer debts during the COVID-19 emergency period and for 120 days after. Key provisions include: Debt collectors cannot enforce security interests, seize assets, evict consumers, or disconnect utility services for nonpayment during this period. After this period, debt collectors must provide repayment options, including extending the repayment period. The bill also requires creditors to establish forbearance programs allowing consumers experiencing COVID-19 financial hardship to defer payments with no additional fees or penalties. Additionally, the Federal Reserve is required to establish a credit facility to provide long-term, low-cost loans to creditors to offset losses from these forbearance programs.
Committee Categories
Business and Industry
Sponsors (2)
Last Action
Referred to the House Committee on Financial Services. (on 07/27/2020)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.congress.gov/bill/116th-congress/house-bill/7796/all-info |
| BillText | https://www.congress.gov/116/bills/hr7796/BILLS-116hr7796ih.pdf |
| Bill | https://www.congress.gov/116/bills/hr7796/BILLS-116hr7796ih.pdf.pdf |
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