[Congressional Record Volume 166, Number 41 (Monday, March 2, 2020)]
[House]
[Pages H1428-H1429]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




         FAIR DEBT COLLECTION PRACTICES FOR SERVICEMEMBERS ACT

  Mr. SAN NICOLAS. Mr. Speaker, I move to suspend the rules and pass 
the bill (H.R. 5003) 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, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 5003

       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 
     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. 3. GAO STUDY.

       The Comptroller General of the United States shall conduct 
     a study and submit a report to Congress on the impact of this 
     Act on--
       (1) the timely delivery of information to a covered member 
     (as defined in section 805(e) of the Fair Debt Collection 
     Practices Act, as added by this Act);
       (2) military readiness; and
       (3) national security, including the extent to which 
     covered members with security clearances would be impacted by 
     uncollected debt.

     SEC. 4. DETERMINATION OF BUDGETARY EFFECTS.

       The budgetary effects of this Act, for the purpose of 
     complying with the Statutory Pay-As-You-Go Act of 2010, shall 
     be determined by reference to the latest statement titled 
     ``Budgetary Effects of PAYGO Legislation'' for this Act, 
     submitted for printing in the Congressional Record by the 
     Chairman of the House Budget Committee, provided that such 
     statement has been submitted prior to the vote on passage.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Guam (Mr. San Nicolas) and the gentleman from Arkansas (Mr. Hill) each 
will control 20 minutes.
  The Chair recognizes the gentleman from Guam.


                             General Leave

  Mr. SAN NICOLAS. Mr. Speaker, I ask unanimous consent that all 
Members may have 5 legislative days within which to revise and extend 
their remarks on this legislation and to insert extraneous material 
thereon.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Guam?
  There was no objection.
  Mr. SAN NICOLAS. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I would like to thank Representative Dean for her 
leadership on H.R. 5003 and the relief that it will provide to our 
servicemembers.
  At a full Financial Services Committee hearing in September of last 
year, we heard testimony about the harmful impact of predatory debt 
collection practices, including negative impacts on the servicemembers 
protecting our country.
  We know this impact is significant, given that two out of every five 
servicemember complaints submitted to the Consumer Financial Protection 
Bureau are about predatory debt collection practices.
  Some of the complaints include inappropriate threats of punishment 
under the Uniform Code of Military Justice, threats to the rank and 
security clearance of the servicemember, and even reports of debt 
collectors inappropriately contacting the commanding officer of the 
debt holder.
  It is a disgrace that people serving in the military are being 
threatened and intimidated when they are serving our country. The 
impact of these abusive collection practices is severe, as 
servicemembers have reported increased stress and hardship as a result 
of predatory debt collectors.
  These unfair and unnecessary practices against people putting their 
lives on the line for this country must end, which is why the National 
Military Family Association; Veterans Education Success; and Retired 
Army Colonel Paul Kantwill, the former CFPB Assistant Director for 
Servicemember Affairs, all support the bill.
  Democrats and Republicans agree that Congress should put a halt to 
these abusive practices, and this bill does just that.
  Mr. Speaker, thanks to the work of my colleagues, Representative 
Dean, Chairwoman Waters, Ranking Member McHenry, and colleagues on both 
sides of the aisle from the Financial Services and the House Armed 
Services Committees, we were able to collaborate on the issues and pass 
this bill out of our committee with unanimous support in November of 
last year.
  Mr. Speaker, I reserve the balance of my time.
  Mr. HILL of Arkansas. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I rise in support of H.R. 5003.
  I thank the gentlewoman from Pennsylvania (Ms. Dean) for introducing 
this legislation.
  Our servicemembers put their lives on the line for us every day. The 
last thing we want is that, when they are serving, they are to be 
distracted.
  H.R. 5003 prohibits debt collectors from using threats against the 
servicemember's rank or security clearance or threats of prosecution 
under the Uniform Code of Military Justice. Not only are such practices 
unfair, they increase the risk of harm to the servicemember's military 
readiness.
  During the committee markup of H.R. 5003, Republicans expressed 
concerns that there were too many unanswered questions about how this 
bill could impact military readiness.
  The gentleman from Ohio (Mr. Stivers) offered an amendment to direct 
the Comptroller General of the United States to conduct a study on the 
impact of this bill and what its impact is on the timeliness with which 
servicemembers are informed about debts and collection, as well as on 
military readiness and national security.
  Mr. Speaker, I thank the bill's sponsor and Chair Waters in accepting 
Mr. Stivers' constructive addition.

                              {time}  1715

  This bill is a commonsense approach to ensure that Congress considers 
the connection between national security and the protection of 
servicemembers from unfair practices.
  Mr. Speaker, it is very important today that we thank the Department 
of

[[Page H1429]]

Defense and the House Armed Services Committee for their support and 
analysis in making this a quality measure for us to consider.
  All Americans deserve to be treated with dignity and respect when 
faced with repaying a debt. This is especially true for our 
servicemembers who fight for our freedoms every day.
  This bill will provide important safeguards, and I urge my colleagues 
to support it.
  Mr. Speaker, I reserve the balance of my time.
  Mr. SAN NICOLAS. Mr. Speaker, I yield such time as she may consume to 
the gentlewoman from Pennsylvania (Ms. Dean), the sponsor of this 
important legislation.
  Ms. DEAN. Mr. Speaker, I thank the good gentleman from Guam for 
yielding.
  I rise in support of H.R. 5003, the Fair Debt Collection Practices 
for Servicemembers Act.
  Every day we are reminded of the significant sacrifices our troops 
make to protect us, and as Members of Congress we have a responsibility 
to protect those who protect us.
  The Fair Debt Collection Practices for Servicemembers Act works to 
live up to this responsibility by addressing abusive debt collection 
practices specifically targeting servicemembers.
  According to the Consumer Financial Protection Bureau, approximately 
40 percent of the complaints filed by servicemembers concern debt 
collection, as compared to 26 percent by nonservicemembers. These debt 
collection practices are manipulative and have negative career 
implications for soldiers and their families.
  Egregious practices include: Contacting the servicemembers' chain of 
command in order to extract payment, threatening punishment through the 
Uniform Code of Military Justice, threatening rank reduction, or 
threatening to revoke a soldier's security clearances.
  Unfortunately, these practices do not stop with the servicemember. 
Some debt collectors also target military spouses, unfairly burdening 
our military families who sacrifice so much for us.
  These tactics are egregious and must stop. Our servicemen and -women 
make extraordinary sacrifices for all of us. The last thing they need 
is harassment from debt collectors who take advantage of their service, 
which is why I am pleased to rise in support of this bill and to have 
had the chance to work with the entire Financial Services Committee, 
the chair, the ranking member, and the members.
  Specifically, my bill amends the Fair Debt Collection Practices Act 
and prohibits a debt collector from communicating with a 
servicemember's chain of command or department for the purpose of 
threatening to have their rank reduced or threatening to revoke 
security clearance.
  This legislation will help ensure that our military families are not 
unnecessarily targeted for their service to our country and shield them 
from bad practices. I am in awe of our servicemembers' spirit of 
service. We must do our part to service them.
  I thank my colleagues, Representative Stivers and Representative 
Davidson, a fellow member of the Financial Services Committee and an 
Army veteran with years of service, for cosponsoring and supporting 
this bill. I urge all Members to support it.
  Mr. HILL of Arkansas. Mr. Speaker, I yield myself the balance of my 
time.
  I think that was an excellent description of why this bill is needed. 
We honor the 1 percent of Americans that go out, put on the uniform, 
and serve the other 99 percent of Americans, those who work for our 
freedoms every day around the world, 24/7. This is one of the least 
things we can do to make servicemembers' lives and the lives of those 
military families at the margin better.
  I thank my friends for bringing this bill. I appreciate its sponsor.
  Mr. Speaker, I yield back the balance of my time.
  Mr. SAN NICOLAS. Mr. Speaker, I yield myself the balance of my time.
  I thank Representative Dean, Chairwoman Waters, and my colleagues on 
both sides of the aisle for their good work and collaboration on this 
issue.
  Mr. Speaker, I urge my colleagues to support this bipartisan bill, 
and I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Guam (Mr. San Nicolas) that the House suspend the rules 
and pass the bill, H.R. 5003, as amended.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Ms. DEAN. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further 
proceedings on this motion will be postponed.

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