[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2547 Engrossed in House (EH)]

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117th CONGRESS
  1st Session
                                H. R. 2547

_______________________________________________________________________

                                 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:

                                                                 Clerk.
117th CONGRESS

  1st Session

                               H. R. 2547

_______________________________________________________________________

                                 AN ACT

   To expand and enhance consumer, student, servicemember, and small 
business protections with respect to debt collection practices, and for 
                            other purposes.