[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2454 Introduced in Senate (IS)]

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119th CONGRESS
  1st Session
                                S. 2454

  To amend the Fair Debt Collection Practices Act to provide enhanced 
 protection against debt collector harassment of members of the Armed 
                    Forces, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 24, 2025

  Mr. Warnock (for himself, Mr. Budd, and Mr. Cornyn) introduced the 
 following bill; which was read twice and referred to the Committee on 
                  Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
  To amend the Fair Debt Collection Practices Act to provide enhanced 
 protection against debt collector harassment of members of the Armed 
                    Forces, 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.

    This Act may be cited as the ``Fair Debt Collection Practices for 
Servicemembers Act''.

SEC. 2. 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 
        individual' means--
                    ``(A) a covered member or a dependent, as those 
                terms are defined in section 987(i) of title 10, United 
                States Code;
                    ``(B) an individual who was separated, discharged, 
                or released from duty described in subparagraph (A) or 
                (B) of section 987(i)(1) of title 10, United States 
                Code, but only during the 365-day period beginning on 
                the date of separation, discharge, or release;
                    ``(C) a dependent described in subparagraph (A), 
                (D), (E), or (I) of section 1072(2) of title 10, United 
                States Code, of an individual described in subparagraph 
                (B); or
                    ``(D) a member of the Selected Reserve of the Ready 
                Reserve of the reserve components of the Armed Forces, 
                as defined in section 10143 of title 10, United States 
                Code.
            ``(2) Prohibitions.--A debt collector may not, in 
        connection with the collection of any debt of a covered 
        individual--
                    ``(A) threaten to have the covered individual 
                reduced in rank;
                    ``(B) threaten to have the covered individual's 
                security clearance revoked; or
                    ``(C) threaten to have the covered individual 
                prosecuted under chapter 47 of title 10, United States 
                Code (commonly known as the `Uniform Code of Military 
                Justice').
            ``(3) Rule of construction.--Nothing in this subsection may 
        be construed to restrict the ability of a debt collector to 
        provide a covered individual with accurate and lawful 
        information regarding any debt owed by the covered individual 
        (including the amount of such a debt, the status of such a 
        debt, or the consequences of nonpayment with respect to such a 
        debt), if providing that information does not violate paragraph 
        (2) or any other provision of this title.''.
    (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 individual (as 
        defined in section 805(e)(1)) that failure to cooperate with a 
        debt collector will result in--
                    ``(A) a reduction in rank of the covered 
                individual;
                    ``(B) a revocation of the covered individual's 
                security clearance; or
                    ``(C) prosecution under chapter 47 of title 10, 
                United States Code (commonly known as the `Uniform Code 
                of Military Justice').''.

SEC. 3. GAO STUDY.

    (a) Definition.--In this section, the term ``covered individual'' 
has the meaning given the term in subsection (e) of section 805 of the 
Fair Debt Collection Practices Act (15 U.S.C. 1692c), as added by this 
Act.
    (b) Requirement.--The Comptroller General of the United States 
shall conduct a study and submit a report to Congress on the impact of 
this Act, and the amendments made by this Act, on--
            (1) the timely delivery of information to a covered 
        individual;
            (2) military readiness; and
            (3) national security, including the extent to which 
        covered individuals with security clearances would be impacted 
        by uncollected debt.
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