1.
This Act may be cited as the
Fair Debt Collection Practices for Servicemembers
Act
.
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)
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)
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)
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)
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
).
.
3.
(a)
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)
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.