[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2547 Referred in Senate (RFS)]
<DOC>
117th CONGRESS
1st Session
H. R. 2547
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 17, 2021
Received; read twice and referred to the Committee on Banking, Housing,
and Urban Affairs
_______________________________________________________________________
AN ACT
To expand and enhance consumer, student, servicemember, and small
business protections with respect to debt collection practices, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Comprehensive Debt
Collection Improvement Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--SMALL BUSINESS LENDING FAIRNESS ACT
Sec. 101. Short title.
Sec. 102. Obligor transactions.
Sec. 103. Enforcement of security interests.
TITLE II --FAIR DEBT COLLECTION PRACTICES FOR SERVICEMEMBERS ACT
Sec. 201. Short title.
Sec. 202. Enhanced protection against debt collector harassment of
servicemembers.
Sec. 203. GAO study and report.
TITLE III--PRIVATE LOAN DISABILITY DISCHARGE ACT
Sec. 301. Short title.
Sec. 302. Protections for obligors and cosigners in case of death or
total and permanent disability.
TITLE IV--CONSUMER PROTECTION FOR MEDICAL DEBT COLLECTIONS ACT
Sec. 401. Short title.
Sec. 402. Amendments to the Fair Debt Collection Practices Act.
Sec. 403. Prohibition on consumer reporting agencies reporting certain
medical debt.
Sec. 404. Requirements for furnishers of medical debt information.
TITLE V--ENDING DEBT COLLECTION HARASSMENT ACT
Sec. 501. Short title.
Sec. 502. Consumer protections relating to debt collection practices.
TITLE VI--STOP DEBT COLLECTION ABUSE ACT
Sec. 601. Short title.
Sec. 602. Definitions.
Sec. 603. Debt collection practices for debt collectors hired by
Federal agencies.
Sec. 604. Unfair practices.
Sec. 605. GAO study and report.
TITLE VII--DEBT COLLECTION PRACTICES HARMONIZATION ACT
Sec. 701. Short title.
Sec. 702. Award of damages.
Sec. 703. Prohibition on the referral of emergency individual
assistance debt.
TITLE VIII--NON-JUDICIAL FORECLOSURE DEBT COLLECTION CLARIFICATION ACT
Sec. 801. Short title.
Sec. 802. Enforcement of security interests.
TITLE IX--SECURING CONSUMERS AGAINST MISREPRESENTED DEBT ACT
Sec. 901. Short title.
Sec. 902. Legal actions by debt collectors.
TITLE X--TEMPORARY RELIEF FOR PRIVATE STUDENT LOAN BORROWERS
Sec. 1001. Temporary relief for private student loan borrowers.
TITLE XI--REPORTS
Sec. 1101. Report on COVID-19 pandemic debt collection practices.
TITLE XII--FAIR DEBT COLLECTION IMPROVEMENT ACT
Sec. 1201. Short title.
Sec. 1202. Prohibition on collecting time-barred debt.
TITLE XIII--CONSUMER BILL OF RIGHTS
Sec. 1301. Consumer bill of rights against abusive debt collection
practices.
TITLE XIV--REPORT ON EXPERIENCES OF DELINQUENT BORROWERS OF PRIVATE
EDUCATION LOANS
Sec. 1401. Report on experiences of delinquent student loan borrowers.
TITLE XV--REPORTS
Sec. 1501. Report on use of electronic and telephone communications in
the debt collection industry.
TITLE XVI--REPORTS
Sec. 1601. Report on debt collection practices and racial disparities.
TITLE XVII--MISCELLANEOUS PROVISIONS
Sec. 1701. Discretionary surplus funds.
Sec. 1702. Effective date.
TITLE XVIII--RELEASE OF COSIGNERS ON PRIVATE STUDENT LOANS ON DEATH OF
BORROWER
Sec. 1801. Short title.
Sec. 1802. Applicability of certain amendments to the Truth in Lending
Act.
TITLE I--SMALL BUSINESS LENDING FAIRNESS ACT
SEC. 101. SHORT TITLE.
This title may be cited as the ``Small Business Lending Fairness
Act''.
SEC. 102. OBLIGOR TRANSACTIONS.
(a) In General.--Chapter 2 of the Truth in Lending Act (15 U.S.C.
1631 et seq.) is amended by adding at the end the following:
``Sec. 140B. Unfair credit practices
``(a) In General.--In connection with the extension of credit or
creation of debt in or affecting commerce, as defined in section 4 of
the Federal Trade Commission Act (15 U.S.C. 44), including any advance
of funds or sale or assignment of future income or receivables that may
or may not be credit, no person may directly or indirectly take or
receive from another person or seek to enforce an obligation that
constitutes or contains a cognovit or confession of judgment (for
purposes other than executory process in the State of Louisiana),
warrant of attorney, or other waiver of the right to notice and the
opportunity to be heard in the event of suit or process thereon.
``(b) Exemption.--The exemptions described in section 104 shall not
apply to this section.''.
(b) Technical and Conforming Amendments.--
(1) Section 130 of the Truth in Lending Act (15 U.S.C.
1640) is amended by adding at the end the following:
``(m) Creditor.--In this section, the term `creditor' refers to any
person charged with compliance that is not the obligor.''.
(2) The table of sections in chapter 2 of the Truth in
Lending Act (15 U.S.C. 1631 et seq.) is amended by adding at
the end the following:
``140B. Unfair credit practices.''.
SEC. 103. ENFORCEMENT OF SECURITY INTERESTS.
Section 103 of the Truth in Lending Act (15 U.S.C. 1602) is amended
by adding at the end the following:
``(ff) The term `debt' means any obligation of a person to pay to
another person money--
``(1) that includes the right of the person providing the
money to a legal or an equitable remedy for breach of
performance if the breach gives rise to a right to payment; and
``(2) regardless of whether the obligation or right to a
remedy described in paragraph (1) is absolute or contingent,
has been reduced to judgment, is fixed, matured, unmatured,
disputed, undisputed, recourse, nonrecourse, secured, or
unsecured''.
TITLE II--FAIR DEBT COLLECTION PRACTICES FOR SERVICEMEMBERS ACT
SEC. 201. SHORT TITLE.
This title may be cited as the ``Fair Debt Collection Practices for
Servicemembers Act''.
SEC. 202. ENHANCED PROTECTION AGAINST DEBT COLLECTOR HARASSMENT OF
SERVICEMEMBERS.
(a) Communication in Connection With Debt Collection.--Section 805
of the Fair Debt Collection Practices Act (15 U.S.C. 1692c) is amended
by adding at the end the following:
``(e) Communications Concerning Servicemember Debts.--
``(1) Definition.--In this subsection, the term `covered
member' means--
``(A) a covered member or a dependent as defined in
section 987(i) of title 10, United States Code; and
``(B)(i) an individual who was separated,
discharged, or released from duty described in such
section 987(i)(1), but only during the 365-day period
beginning on the date of separation, discharge, or
release; or
``(ii) a person, with respect to an individual
described in clause (i), described in subparagraph (A),
(D), (E), or (I) of section 1072(2) of title 10, United
States Code.
``(2) Prohibitions.--A debt collector may not, in
connection with the collection of any debt of a covered
member--
``(A) threaten to have the covered member reduced
in rank;
``(B) threaten to have the covered member's
security clearance revoked; or
``(C) threaten to have the covered member
prosecuted under chapter 47 of title 10, United States
Code (the Uniform Code of Military Justice).''.
(b) Unfair Practices.--Section 808 of the Fair Debt Collection
Practices Act (15 U.S.C. 1692f) is amended by adding at the end the
following:
``(9) The representation to any covered member (as defined
under section 805(e)(1)) that failure to cooperate with a debt
collector will result in--
``(A) a reduction in rank of the covered member;
``(B) a revocation of the covered member's security
clearance; or
``(C) prosecution under chapter 47 of title 10,
United States Code (the Uniform Code of Military
Justice).''.
SEC. 203. GAO STUDY AND REPORT.
(a) Study.--The Comptroller General of the United States shall
conduct a study on the impact of debt collection on covered members (as
defined under section 805(e)(1) of the Fair Debt Collection Practices
Act, as added by section 202), which shall--
(1) identify types of false, deceptive, misleading, unfair,
abusive, and harassing debt collection practices experienced by
covered members and make recommendations to eliminate these
practices;
(2) identify collection practices of creditors and debt
collectors experienced by covered members;
(3) discuss the effect of these practices on military
readiness; and
(4) discuss any national security implications, including
the extent to which covered members with security clearances
would be impacted by uncollected debt.
(b) Report.--Not later than 1 year after the date of enactment of
this Act, the Comptroller General of the United States shall submit to
Congress a report on the completed study required under subsection (a).
TITLE III--PRIVATE LOAN DISABILITY DISCHARGE ACT
SEC. 301. SHORT TITLE.
This title may be cited as the ``Private Loan Disability Discharge
Act of 2021''.
SEC. 302. PROTECTIONS FOR OBLIGORS AND COSIGNERS IN CASE OF DEATH OR
TOTAL AND PERMANENT DISABILITY.
(a) In General.--Section 140(g) of the Truth in Lending Act (15
U.S.C. 1650(g)) is amended--
(1) in paragraph (2)--
(A) in the heading, by striking ``in case of death
of borrower'';
(B) in subparagraph (A), by inserting after ``of
the death'', the following: ``or total and permanent
disability''; and
(C) in subparagraph (C), by inserting after ``of
the death'', the following: ``or total and permanent
disability''; and
(2) by adding at the end the following:
``(3) Discharge in case of death or total and permanent
disability of borrower.--The holder of a private education loan
shall, when notified of the death or total and permanent
disability of a student obligor (and any cosigner), discharge
the liability of the student obligor on the loan and may not,
after such notification--
``(A) attempt to collect on the outstanding
liability of the student obligor; and
``(B) in the case of total and permanent
disability, monitor the disability status of the
student obligor at any point after the date of
discharge.
``(4) Private discharge in cases of certain discharge for
death or disability.--The holder of a private education loan
shall, when notified of the discharge of liability of a student
obligor on a loan described under section 108(f)(5)(A) of the
Internal Revenue Code of 1986, discharge any liability of the
student obligor (and any cosigner) on any private education
loan which the private education loan holder holds and may not,
after such notification--
``(A) attempt to collect on the outstanding
liability of the student obligor; and
``(B) in the case of total and permanent
disability, monitor the disability status of the
student obligor at any point after the date of
discharge.
``(5) Total and permanent disability defined.--For the
purposes of this subsection and with respect to an individual,
the term `total and permanent disability' means the individual
is totally and permanently disabled, as such term is defined in
section 685.102(b) of title 34, Code of Federal Regulations.''.
(b) Rulemaking.--The Director of the Bureau of Consumer Financial
Protection may issue rules to implement the amendments made by
subsection (a) as the Director determines appropriate.
TITLE IV--CONSUMER PROTECTION FOR MEDICAL DEBT COLLECTIONS ACT
SEC. 401. SHORT TITLE.
This title may be cited as the ``Consumer Protection for Medical
Debt Collections Act''.
SEC. 402. AMENDMENTS TO THE FAIR DEBT COLLECTION PRACTICES ACT.
(a) Definition.--Section 803 of the Fair Debt Collection Practices
Act (15 U.S.C. 1692a) is amended by adding at the end the following:
``(9) The term `medical debt' means a debt arising from the
receipt of medical services, products, or devices.''.
(b) Unfair Practices.--Section 808 of the Fair Debt Collection
Practices Act (15 U.S.C. 1692f), as amended by section 202(b), is
amended by adding at the end the following:
``(10) Engaging in activities to collect or attempting to
collect a medical debt before the end of the 2-year period
beginning on the date that the first payment with respect to
such medical debt is due.''.
SEC. 403. PROHIBITION ON CONSUMER REPORTING AGENCIES REPORTING CERTAIN
MEDICAL DEBT.
(a) Definition.--Section 603 of the Fair Credit Reporting Act (15
U.S.C. 1681a) is amended by adding at the end the following:
``(bb) Medical Debt.--The term `medical debt' means a debt arising
from the receipt of medical services, products, or devices.
``(cc) Medically Necessary Procedure.--The term `medically
necessary procedure' means--
``(1) health care services or supplies needed to diagnose
or treat an illness, injury, condition, disease, or its
symptoms and that meet accepted standards of medicine; and
``(2) health care to prevent illness or detect illness at
an early stage, when treatment is likely to work best
(including preventive services such as pap tests, flu shots,
and screening mammograms).''.
(b) In General.--Section 605(a) of the Fair Credit Reporting Act
(15 U.S.C. 1681c(a)) is amended by adding at the end the following new
paragraphs:
``(9) Any information related to a debt arising from a
medically necessary procedure.
``(10) Any information related to a medical debt, if the
date on which such debt was placed for collection, charged to
profit or loss, or subjected to any similar action antedates
the report by less than 365 calendar days.''.
SEC. 404. REQUIREMENTS FOR FURNISHERS OF MEDICAL DEBT INFORMATION.
(a) Additional Notice Requirements for Medical Debt.--Section 623
of the Fair Credit Reporting Act (15 U.S.C. 1681s-2) is amended by
adding at the end the following:
``(f) Additional Notice Requirements for Medical Debt.--Before
furnishing information regarding a medical debt of a consumer to a
consumer reporting agency, the person furnishing the information shall
send a statement to the consumer that includes the following:
``(1) A notification that the medical debt--
``(A) may not be included on a consumer report made
by a consumer reporting agency until the later of the
date that is 365 days after--
``(i) the date on which the person sends
the statement;
``(ii) with respect to the medical debt of
a borrower demonstrating hardship, a date
determined by the Director of the Bureau; or
``(iii) the date described under section
605(a)(10); and
``(B) may not ever be included on a consumer report
made by a consumer reporting agency, if the medical
debt arises from a medically necessary procedure.
``(2) A notification that, if the debt is settled or paid
by the consumer or an insurance company before the end of the
period described under paragraph (1)(A), the debt may not be
reported to a consumer reporting agency.
``(3) A notification that the consumer may--
``(A) communicate with an insurance company to
determine coverage for the debt; or
``(B) apply for financial assistance.''.
(b) Furnishing of Medical Debt Information.--Section 623 of the
Fair Credit Reporting Act (15 U.S.C. 1681s-2), as amended by subsection
(a), is further amended by adding at the end the following:
``(g) Furnishing of Medical Debt Information.--
``(1) Prohibition on reporting debt related to medically
necessary procedures.--No person shall furnish any information
to a consumer reporting agency regarding a debt arising from a
medically necessary procedure.
``(2) Treatment of other medical debt information.--With
respect to a medical debt not described under paragraph (1), no
person shall furnish any information to a consumer reporting
agency regarding such debt before the end of the 365-day period
beginning on the later of--
``(A) the date on which the person sends the
statement described under subsection (f) to the
consumer;
``(B) with respect to the medical debt of a
borrower demonstrating hardship, a date determined by
the Director of the Bureau; or
``(C) the date described in section 605(a)(10).
``(3) Treatment of settled or paid medical debt.--With
respect to a medical debt not described under paragraph (1), no
person shall furnish any information to a consumer reporting
agency regarding such debt if the debt is settled or paid by
the consumer or an insurance company before the end of the 365-
day period described under paragraph (2).
``(4) Borrower demonstrating hardship defined.--In this
subsection, and with respect to a medical debt, the term
`borrower demonstrating hardship' means a borrower or a class
of borrowers who, as determined by the Director of the Bureau,
is facing or has experienced extenuating life circumstances or
events that result in severe financial or personal barriers
such that the borrower or class of borrowers does not have the
capacity to repay the medical debt.''.
TITLE V--ENDING DEBT COLLECTION HARASSMENT ACT
SEC. 501. SHORT TITLE.
This title may be cited as the ``Ending Debt Collection Harassment
Act of 2021''.
SEC. 502. CONSUMER PROTECTIONS RELATING TO DEBT COLLECTION PRACTICES.
(a) Reports on Debt Collection Complaints and Enforcement
Actions.--
(1) Semi-annual report.--Section 1016(c) of the Consumer
Financial Protection Act of 2010 (12 U.S.C. 5496(c)) is
amended--
(A) in paragraph (8), by striking ``and'' at the
end;
(B) in paragraph (9), by striking the period at the
end and inserting a semicolon; and
(C) by adding at the end the following:
``(10) an analysis of the consumer complaints received by
the Bureau with respect to debt collection, including a State-
by-State breakdown of such complaints;
``(11) an analysis of the number of people unable to pay a
debt because a debt collector is unable to accept a cash
payment; and
``(12) a list of enforcement actions taken against debt
collectors during the preceding year.''.
(2) Annual report.--Section 815(a) of the Fair Debt
Collection Practices Act (15 U.S.C. 1692m(a)) is amended by
adding at the end the following new sentence: ``Each such
report shall also include an analysis of the impact of
electronic communications by debt collectors on consumer
experiences with debt collection, including a consideration of
consumer complaints about the use of electronic communications
in debt collection.''.
(b) Limitation on Debt Collection Rules.--Section 1022 of the
Consumer Financial Protection Act of 2010 (12 U.S.C. 5512) is amended
by adding at the end the following:
``(e) Limitation on Debt Collection Rules.--The Director may not
issue any rule with respect to debt collection that does not prohibit a
debt collector to send unlimited email, text messages, and direct
messages through social media to a consumer.''.
(c) Protection of Consumers From Unlimited Texts, Emails, and
Social Media Messages Used in Debt Collection.--Section 806 of the Fair
Debt Collection Practices Act (15 U.S.C. 1692d) is amended by adding at
the end the following new paragraph:
``(7) Contacting the person electronically, including by
email, text message, and direct message through social media,
if--
``(A) the communication is required to be in
writing and the person has not consented to receive the
communication electronically in accordance with the
requirements of the Electronic Signatures in Global and
National Commerce Act;
``(B) the communication is governed by the
Telephone Consumer Protection Act and the person has
not consented to receive such communication in
accordance with the requirements of such Act;
``(C) consent by the person to receive the
communication was not provided directly to the debt
collector;
``(D) consent by the person to receive the
communication electronically has been withdrawn; or
``(E) the frequency of contact by the debt
collector is greater than consented to by the
person.''.
(d) Protection Of Consumers From Social Media Communications In
Debt Collection.--Section 808(7) of the Fair Debt Collection Practices
Act (15 U.S.C. 1692f) is amended by inserting the following before the
period: ``or through a social media platform if the communication is
viewable by the general public or the person's social media contacts''.
(e) Ensuring Consumers Receive Notice of Debt Collection
Protections.--Section 809(a) of the Fair Debt Collection Practices Act
(15 U.S.C. 1692g(a)) is amended in the matter preceding paragraph (1)--
(1) by striking ``Within five days'' and all that follows
through ``any debt,'' and inserting the following: ``Notice of
Debt; Contents.--Within five days after the initial
communication with a consumer in connection with the collection
of any debt,''; and
(2) by striking ``, unless the following information is
contained in the initial communication or the consumer has paid
the debt,''.
(f) Improved Limitations on Debt Collection Rules.--Section 814(d)
of the Fair Debt Collection Practices Act (15 U.S.C. 1692l(d)) is
amended by adding at the end the following: ``Such rules--
``(1) may not allow a debt collector to send unlimited
electronic communications to a consumer;
``(2) shall require debt collectors to obtain consent
directly from consumers before contacting them using a method
other than by postal mail or by telephone;
``(3) may not waive the requirements of the Electronic
Signatures in Global and National Commerce Act (15 U.S.C. 7001
et seq.); and
``(4) shall allow consumers to opt out of any method of
communication that the debt collector uses to communicate with
consumers, including a method for which such consumer had given
prior consent.''.
TITLE VI--STOP DEBT COLLECTION ABUSE ACT
SEC. 601. SHORT TITLE.
This title may be cited as the ``Stop Debt Collection Abuse Act of
2021''.
SEC. 602. DEFINITIONS.
Section 803 of the Fair Debt Collection Practices Act (15 U.S.C.
1692a) is amended--
(1) in paragraph (4), by striking ``facilitating collection
of such debt for another'' and inserting ``collection of such
debt'';
(2) by amending paragraph (5) to read as follows:
``(5) The term `debt' means any obligation or alleged
obligation of a consumer--
``(A) to pay money arising out of a transaction in
which the money, property, insurance or services which
are the subject of the transaction are primarily for
personal, family, or household purposes, whether or not
such obligation has been reduced to judgment;
``(B) to pay a loan, overpayment, fine, penalty,
restitution, fee, or other money currently or
originally owed to or guaranteed by a Federal or State
government, including any courts or agencies; or
``(C) which is secured by real or personal property
that is used or was obtained primarily for personal,
family, or household purposes, where such property is
subject to forfeiture or repossession upon nonpayment
of the obligation or alleged obligation.
The enforcement of a debt described in subparagraph (C) is
deemed to be a collection of a debt.''; and
(3) in paragraph (6)--
(A) by redesignating subparagraphs (A) through (F)
as clauses (i) through (vi), respectively;
(B) in clause (iii), as so redesignated, by
inserting ``(not including an independent contractor)''
after ``any State'';
(C) by amending clause (vi), as so redesignated, to
read as follows:
``(vi) any person collecting or attempting to
collect any debt owed or due or asserted to be owed or
due another to the extent such activity--
``(I) is incidental to a bona fide
fiduciary obligation or a bona fide escrow
arrangement;
``(II) concerns a debt which was originated
by such person;
``(III) concerns a debt which was not in
default at the time it was obtained by such
person; or
``(IV) concerns a debt obtained by such
person as a secured party in a commercial
credit transaction involving the creditor.'';
(D) by striking the paragraph designation and the
first and second sentences and inserting the following:
``(6)(A) The term `debt collector' means--
``(i) any person who uses any instrumentality of
interstate commerce or the mails in any business the
principal purpose of which is the collection of any
debts;
``(ii) any person who regularly collects or
attempts to collect, directly or indirectly, by the
person's own means or by hiring another debt collector,
debts owed or due or asserted to be owed or due another
or that have been obtained by assignment or transfer
from another;
``(iii) any person who regularly collects debts
currently or originally owed or allegedly owed to a
Federal or State agency or court; or
``(iv) notwithstanding subparagraph (B)(vi), any
creditor who in the process of collecting debts of such
creditor, uses another name that would indicate that a
third person is collecting or attempting to collect
such debts.''; and
(E) in the fourth sentence, by striking ``The term
does not include'' and inserting the following:
``(B) The term does not include''.
SEC. 603. DEBT COLLECTION PRACTICES FOR DEBT COLLECTORS HIRED BY
FEDERAL AGENCIES.
(a) In General.--The Fair Debt Collection Practices Act (15 U.S.C.
1692 et seq.) is amended by inserting after section 812 (15 U.S.C.
1692j) the following:
``Sec. 812A. Debt collection practices for debt collectors hired by
Federal agencies
``(a) Limitation on Time To Turn Debt Over to Debt Collector.--A
Federal agency that is a creditor may not sell or transfer a debt
described in section 803(5)(B) to a debt collector earlier than 90 days
after the date on which the obligation or alleged obligation becomes
delinquent or defaults.
``(b) Required Notice.--
``(1) In general.--Before transferring or selling a debt
described in section 803(5)(B) to a debt collector or
contracting with a debt collector to collect such a debt, a
Federal agency shall notify the consumer not fewer than 3 times
that the Federal agency will take such action.
``(2) Frequency of notifications.--The second and third
notifications described in paragraph (1) shall be made not less
than 30 days after the date on which the previous notification
is made.''.
(b) Clerical Amendment.--The table of contents for the Fair Debt
Collection Practices Act is amended by inserting after the item
relating to section 812 the following:
``812A. Debt collection practices for debt collectors hired by Federal
agencies.''.
SEC. 604. UNFAIR PRACTICES.
Section 808 of the Fair Debt Collection Practices Act (15 U.S.C.
1692f) is amended by striking paragraph (1) and inserting the
following:
``(1) The collection of any amount (including any interest,
fee, charge, or expense incidental to the principal obligation)
unless--
``(A) such amount is expressly authorized by the
agreement creating the debt or permitted by law; and
``(B) in the case of any amount charged by a debt
collector collecting a debt described in section
803(5)(B), such amount is--
``(i) reasonable in relation to the actual
costs of the collection;
``(ii) authorized by a contract between the
debt collector and the Federal or State
government; and
``(iii) not greater than 10 percent of the
amount collected by the debt collector.''.
SEC. 605. GAO STUDY AND REPORT.
(a) Study.--The Comptroller General of the United States shall
commence a study on the use of debt collectors by Federal and State
government agencies, including--
(1) the powers given to the debt collectors by Federal and
State government agencies;
(2) the contracting process that allows a Federal or State
government agency to award debt collection to a certain
company, including the selection process;
(3) any fees charged to debtors in addition to principal
and interest on the outstanding debt;
(4) how the fees described in paragraph (3) vary from State
to State;
(5) consumer protection at the Federal and State level that
offer recourse to those whom debts have been wrongfully
attributed;
(6) the revenues received by debt collectors from Federal
and State government agencies;
(7) the amount of any revenue sharing agreements between
debt collectors and Federal and State government agencies;
(8) the difference in debt collection procedures across
geographic regions, including the extent to which debt
collectors pursue court judgments to collect debts;
(9) information regarding the amount collected by Federal
and State government agencies through debt collectors,
including the total amount and the percentage of the amount
referred to the debt collectors;
(10) the full cost of outsourcing collection to debt
collectors;
(11) government agency oversight of debt collectors to
ensure that the rights of a consumer (as defined in section
803(3) of the Fair Debt Collection Practices Act (15 U.S.C.
1692a(3))) are protected and that any debt relief and payment
options legally available to consumers is effectively
communicated and made available;
(12) the extent to which Federal and State contracts with
debt collectors reflect or omit effective measures to encourage
debt collectors to align their practices with public policy
concerns (including relief for consumers experiencing financial
hardship) beyond maximizing debt collection;
(13) the extent to which debt collectors induce payment
through use or threat of adverse government actions, such as
arrest warrants or suspension of licenses or vehicle
registration; and
(14) demographic data, including race and income
information, regarding the individuals subject to private
collection of debts owed to government entities.
(b) Report.--Not later than 1 year after the date of enactment of
this Act, the Comptroller General of the United States shall submit to
Congress a report on the completed study required under subsection (a).
(c) State Defined.--For the purposes of this section, the term
``State'' has the meaning given the term section 803 of the Fair Debt
Collection Practices Act.
TITLE VII--DEBT COLLECTION PRACTICES HARMONIZATION ACT
SEC. 701. SHORT TITLE.
This title may be cited as the ``Debt Collection Practices
Harmonization Act''.
SEC. 702. AWARD OF DAMAGES.
(a) Additional Damages Indexed for Inflation.--
(1) In general.--Section 813 of the Fair Debt Collection
Practices Act (15 U.S.C. 1692k) is amended--
(A) in subsection (a)(2)--
(i) in subparagraph (A), by striking ``;
or'' and inserting the following: ``with
respect to any one action taken by a debt
collector in violation of this subchapter;
or'';
(ii) in subparagraph (B)(ii), by striking
``or 1 per centum of the net worth of the debt
collector; and'' and inserting the following:
``or 5 percent of the gross annual revenue of
the debt collector; and'';
(B) in subsection (b), by inserting ``the maximum
amount of statutory damages at the time of
noncompliance,'' before ``the frequency'' each place it
appears; and
(C) by adding at the end the following:
``(f) Adjustment for Inflation.--
``(1) Initial adjustment.--Not later than 90 days after the
date of the enactment of this subsection, the Bureau shall
provide a percentage increase (rounded to the nearest multiple
of $100 or $1,000, as applicable) in the amounts set forth in
this section equal to the percentage by which--
``(A) the Consumer Price Index for All Urban
Consumers (all items, United States city average) for
the 12-month period ending on the June 30 preceding the
date on which the percentage increase is provided,
exceeds
``(B) the Consumer Price Index for the 12-month
period preceding January 1, 1978.
``(2) Annual adjustments.--With respect to any fiscal year
beginning after the date of the increase provided under
paragraph (1), the Bureau shall provide a percentage increase
(rounded to the nearest multiple of $100 or $1,000, as
applicable) in the amounts set forth in this section equal to
the percentage by which--
``(A) the Consumer Price Index for All Urban
Consumers (all items, United States city average) for
the 12-month period ending on the June 30 preceding the
beginning of the fiscal year for which the increase is
made, exceeds
``(B) the Consumer Price Index for the 12-month
period preceding the 12-month period described in
subparagraph (A).''.
(2) Applicability.--The increases made under section 813(f)
of the Fair Debt Collection Practices Act, as added by
paragraph (1)(C) of this subsection, shall apply with respect
to failures to comply with a provision of such Act (15 U.S.C.
1601 et seq.) occurring on or after the date of enactment of
this section.
(b) Injunctive Relief.--Section 813(d) of the Fair Debt Collection
Practices Act (15 U.S.C. 1692k(d)) is amended by adding at the end the
following: ``In a civil action alleging a violation of this title, the
court may award appropriate relief, including injunctive relief.''.
SEC. 703. PROHIBITION ON THE REFERRAL OF EMERGENCY INDIVIDUAL
ASSISTANCE DEBT.
Chapter 3 of title 31, United States Code, is amended--
(1) in subchapter II, by adding at the end the following:
``Sec. 334. Prohibition on the referral of emergency individual
assistance debt
``With respect to any assistance provided by the Federal Emergency
Management Agency to an individual or household pursuant to the Robert
T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C.
5122 et seq.), if the Secretary of the Treasury seeks to recoup any
amount of such assistance because of an overpayment, the Secretary may
not contract with any debt collector as defined in section 803(6) of
the Fair Debt Collection Practices Act (15 U.S.C. 1692a(6)) or other
private party to collect such amounts, unless the overpayment occurred
because of fraud or deceit and the recipient of such assistance knew or
should have known about such fraud or deceit.''; and
(2) in the table of contents for such chapter, by inserting
after the item relating to section 333 the following:
``334. Prohibition on the referral of emergency individual assistance
debt.''.
TITLE VIII--NON-JUDICIAL FORECLOSURE DEBT COLLECTION CLARIFICATION ACT
SEC. 801. SHORT TITLE.
This title may be cited as the ``Non-Judicial Foreclosure Debt
Collection Clarification Act''.
SEC. 802. ENFORCEMENT OF SECURITY INTERESTS.
Section 803(6) of the Fair Debt Collection Practices Act (15
U.S.C. 1692a(6)) is further amended by striking ``For the purpose of
section 808(6), such term also includes any person who uses any
instrumentality of interstate commerce or the mails in any business the
principal purpose of which is the enforcement of security interests.''.
TITLE IX--SECURING CONSUMERS AGAINST MISREPRESENTED DEBT ACT
SEC. 901. SHORT TITLE.
This title may be cited as the ``Securing Consumers Against
Misrepresented Debt Act of 2021'' or the ``SCAM Debt Act''.
SEC. 902. LEGAL ACTIONS BY DEBT COLLECTORS.
Section 811 of the Fair Debt Collections Practices Act (15 U.S.C.
1692i) is amended--
(1) by redesignating subsection (b) as subsection (c); and
(2) by inserting after subsection (a) the following new
subsection:
``(b) Requirements for Debt Collectors.--A debt collector that
takes legal action to collect or attempt to collect a debt shall comply
with the following requirements:
``(1) Provide the consumer written notice of the intent to
take legal action, sent to the consumer's last known address at
least 30 days and not later than 60 days in advance of
commencing the legal action, that shall include--
``(A) all methods that the consumer can use to
contact the debt collector; and
``(B) all information contained in the notice
required under section 809(a) (excluding the
information described in paragraphs (3), (4), and (5)
of such section), updated to ensure correctness.
``(2) In the initial pleading filed by a debt collector to
commence a legal action to collect a debt, include--
``(A) all information contained in the notice
required under section 809(a) (excluding the
information described in paragraphs (3), (4), and (5)
of such section), except any account numbers and any
personally identifiable information, updated to ensure
correctness;
``(B) the last four digits of the account number of
the original debt;
``(C) admissible documentary evidence of--
``(i) 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;
``(ii) any terms and conditions relevant to
the debt;
``(iii) that the consumer incurred the debt
and the amount owed; and
``(iv) 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; and
``(D) a sworn affidavit stating--
``(i) that the applicable statute of
limitations for collecting the debt has not
expired and the date on which such statute of
limitations expires; and
``(ii) that the debt collector personally
reviewed all applicable records and documents
relating to the debt to be collected.''.
TITLE X--TEMPORARY RELIEF FOR PRIVATE STUDENT LOAN BORROWERS
SEC. 1001. TEMPORARY RELIEF FOR PRIVATE STUDENT LOAN BORROWERS.
(a) In General.--A servicer of a private education loan shall not
report an adverse item of information relating to the nonpayment of a
private education loan that occurred during the covered period.
(b) Consumer Reporting Agencies.--During the covered period, a
consumer reporting agency--
(1) may not make a consumer report containing adverse
information relating to the nonpayment of a private education
loan by a covered borrower; and
(2) shall promptly remove, in a period of time as
determined by the Director of the Consumer Financial Protection
Bureau, from a consumer report any such adverse information
reported during the covered period.
(c) Implementation.--The Director of the Consumer Financial
Protection Bureau may issue guidance or rules to implement this
section, including--
(1) requiring any notifications and other requirements that
may be necessary to carry out this section; and
(2) ensuring a covered borrower is aware of their rights
under this section relating to the exclusion or removal of any
relevant adverse information the consumer report of the
consumer.
(d) Effective Date.--This section shall take effect 30 days after
the date of the enactment of this Act.
(e) Definitions.--In this section:
(1) Covered borrower.--The term ``covered borrower'' means
a borrower of a private education loan.
(2) Covered period.--The term ``covered period'' means the
period beginning on March 13, 2020 (the date the President
declared the emergency under section 501 of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act (42
U.S.C. 4121 et seq.) relating to the Coronavirus Disease 2019
(COVID-19) pandemic) and ending on the date that is 30 days
after the end of the incident period for such emergency.
(3) Fair credit reporting act definitions.--The terms
``consumer report'' and ``consumer reporting agency'' have the
meanings given, respectively, in section 603 of the Fair Credit
Reporting Act (15 U.S.C. 1681a).
(4) Private education loan.--The term ``private education
loan'' has the meaning given the term in section 140 of the
Truth in Lending Act (15 U.S.C. 1650).
TITLE XI--REPORTS
SEC. 1101. REPORT ON COVID-19 PANDEMIC DEBT COLLECTION PRACTICES.
(a) In General.--Not later than 6 months after the date of the
enactment of this section, the Director of the Bureau of Consumer
Financial Protection shall submit a report to Financial Services
Committee of the House of Representatives and Banking Committee of the
Senate that--
(1) analyzes available data relating to consumer complaints
about debt collection practices during the COVID-19 pandemic,
including the collection of medical debt and the collection of
debt from servicemembers;
(2) lists all enforcement actions taken by the Bureau
during the COVID-19 pandemic that related to debt collection;
and
(3) describes how the Bureau will use regulatory,
supervisory and enforcement tools to combat predatory debt
collection practices identified during the COVID-19 pandemic.
(b) Additional Required Information.--
(1) In general.--The Director shall require each larger
participant in the consumer debt collection market (as such
term is defined in section 1090 of title 12 of the Code of
Federal Regulations to provide to the Director information
about any default judgements pursued by such larger participant
through litigation during the COVID-19 pandemic.
(2) Inclusion in report.--The Director shall compile all
information received from larger participants under paragraph
(1) and shall include such information in the report required
under subsection (a).
(c) Definitions.--In this section:
(1) The term ``Director'' means the Director of the Bureau
of Consumer Financial Protection.
(2) The term ``Bureau'' means the Bureau of Consumer
Financial Protection.
TITLE XII--FAIR DEBT COLLECTION IMPROVEMENT ACT
SEC. 1201. SHORT TITLE.
This title may be cited as the ``Fair Debt Collection Improvement
Act''.
SEC. 1202. PROHIBITION ON COLLECTING TIME-BARRED DEBT.
(a) In General.--The Fair Debt Collection Practices Act (15 U.S.C.
1692 et seq.) is amended by inserting after section 811 the following:
``Sec. 811A. Prohibition on collecting time-barred debt
``A debt collector may not collect, or attempt to collect, any debt
of a consumer with respect to which the statute of limitations has
expired.''.
(b) Clerical Amendment.--The table of contents for the Fair Debt
Collection Practices Act is amended by inserting after the item
relating to section 811 the following:
``811A. Prohibition on collecting time-barred debt.''.
TITLE XIII--CONSUMER BILL OF RIGHTS
SEC. 1301. CONSUMER BILL OF RIGHTS AGAINST ABUSIVE DEBT COLLECTION
PRACTICES.
(a) In General.--The Director shall, in consultation with relevant
stakeholders and experts that specialize in consumer financial
protection with respect to debt collection practices, maintain a
webpage on the website of the Bureau that outlines consumer rights,
protections, and remedies with respect to debt collection practices.
(b) Accessibility.--
(1) In general.--The Director shall ensure that the webpage
established pursuant to subsection (a) is easily accessible and
understandable.
(2) Languages.--The Director may, as determined appropriate
by the Director, make the website available in languages other
than English.
(c) Contents.--The website established pursuant to subsection (a)
may include--
(1) a description of acceptable and unacceptable practices
that debt collectors may engage in while attempting to collect
debt; and
(2) know your rights information that--
(A) outlines actions a consumer may take if they
are experiencing abusive or inappropriate debt
collection practices;
(B) provides resources to take action to prevent or
stop abusive or inappropriate debt collection
practices;
(C) contact information and other available
resources for a consumer to learn more to prevent or
stop such abusive practices; and
(D) any other information the Bureau deems
appropriate to better inform consumers of their rights
with respect to debt collection practices.
(d) Definitions.--In this section:
(1) The term ``Director'' means the Director of the Bureau
of Consumer Financial Protection.
(2) The term ``Bureau'' means the Bureau of Consumer
Financial Protection.
TITLE XIV--REPORT ON EXPERIENCES OF DELINQUENT BORROWERS OF PRIVATE
EDUCATION LOANS
SEC. 1401. REPORT ON EXPERIENCES OF DELINQUENT STUDENT LOAN BORROWERS.
Not later than 18 months after the date of the enactment of this
Act, the Director of the Bureau of Consumer Financial Protection Bureau
shall carry out a study and submit to Congress a report on the consumer
experiences and financial impacts of debt collection practices on
delinquent borrowers of private education loans (as defined in section
140(a) of the Truth in Lending Act (15 U.S.C. 1650(a)) and such report
shall include an analysis of--
(1) the frequency and nature of private student lenders
challenging undue hardship bankruptcy petitions made by
borrowers of private education loans; and
(2) whether private student lenders disproportionately
challenge undue hardship petitions made by low-income or
otherwise vulnerable borrowers of private education loans.
TITLE XV--REPORTS
SEC. 1501. REPORT ON USE OF ELECTRONIC AND TELEPHONE COMMUNICATIONS IN
THE DEBT COLLECTION INDUSTRY.
Not later than 12 months after the date of the enactment of this
section, the Comptroller General of the United States shall submit a
report to the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and Urban
Affairs of the Senate that--
(1) analyzes trends and impacts associated with the use of
electronic and telephone communications in the debt collection
industry, including a study of the annoyance, abuse, and
harassment of consumers by debt collectors, and methods for
reducing the frequency of electronic and telephone
communications by debt collectors to consumers; and
(2) contains specific regulatory and legislative proposals
to accomplish those goals.
TITLE XVI--REPORTS
SEC. 1601. REPORT ON DEBT COLLECTION PRACTICES AND RACIAL DISPARITIES.
Not later than 18 months after the date of the enactment of this
section, the Director of the Bureau of Consumer Financial Protection
shall submit a report to the Financial Services Committee of the House
of Representatives and Banking Committee of the Senate that--
(1) identifies and analyzes racial disparities relating to
debt collection practices; and
(2) provides administrative and legislative recommendations
to address such disparities.
TITLE XVII--MISCELLANEOUS PROVISIONS
SEC. 1701. DISCRETIONARY SURPLUS FUNDS.
(a) In General.--The dollar amount specified under section
7(a)(3)(A) of the Federal Reserve Act (12 U.S.C. 289(a)(3)(A)) is
reduced by $2,900,000,000.
(b) Effective Date.--The amendment made by subsection (a) shall
take effect on September 30, 2031.
SEC. 1702. EFFECTIVE DATE.
Except as otherwise provided in this Act, this Act and the
amendments made by this Act shall take effect on the date that is 180
days after the date of enactment of this Act.
TITLE XVIII--RELEASE OF COSIGNERS ON PRIVATE STUDENT LOANS ON DEATH OF
BORROWER
SEC. 1801. SHORT TITLE.
This title may be cited as the ``Ryan Frascone Memorial Student
Loan Relief Act of 2021''.
SEC. 1802. APPLICABILITY OF CERTAIN AMENDMENTS TO THE TRUTH IN LENDING
ACT.
(a) In General.--Effective on the date of enactment of the Economic
Growth, Regulatory Relief, and Consumer Protection Act (Public Law 115-
174), section 601(b) of such Act is amended to read as follows:
``(b) Applicability.--The amendments made by subsection (a) shall
apply to private education loan agreements entered into before, on, or
after the date of enactment of this Act.''.
(b) Treasury Loan Purchase Program.--
(1) In general.--The Secretary of the Treasury shall
establish a program under which the Secretary shall purchase
and retire outstanding private education loans--
(A) where the borrower on such loan is deceased;
(B) where there remains a cosigner on the loan;
(C) that were entered into before the date that is
180 days after the date of enactment of the Economic
Growth, Regulatory Relief, and Consumer Protection Act;
and
(D) only upon an application from a holder of such
loan pursuant to paragraph (2) that demonstrates the
holder has suffered financial injury as a result of the
amendment made by subsection (a).
(2) Application.--The holder of a loan described under
paragraph (1) may apply to the Secretary of the Treasury to
have the Secretary purchase and retire such loan by submitting
an application in such form and manner as the Secretary may
require.
(3) Authorization of appropriation.--There is authorized to
be appropriated to the Secretary of the Treasury $5,000,000 to
carry out this subsection.
(4) Truth in lending act terms.--In this subsection, the
terms ``cosigner'' and ``private education loan'' have the
meaning given those terms, respectively, under section 140 of
the Truth in Lending Act (15 U.S.C. 1650).
(c) Severability.--The provisions of this Act are severable. If any
part of this Act is declared invalid or unconstitutional, that
declaration shall not affect the part which remains.
Passed the House of Representatives May 13, 2021.
Attest:
CHERYL L. JOHNSON,
Clerk.