[House Report 116-654]
[From the U.S. Government Publishing Office]
116th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 116-654
======================================================================
STOP DEBT COLLECTION ABUSE ACT OF 2019
_______
December 15, 2020.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Ms. Waters, from the Committee on Financial Services, submitted the
following
R E P O R T
together with
MINORITY VIEWS
[To accompany H.R. 4403]
The Committee on Financial Services, to whom was referred
the bill (H.R. 4403) to amend the Fair Debt Collection
Practices Act to restrict the debt collection practices of
certain debt collectors, having considered the same, reports
favorably thereon with an amendment and recommends that the
bill as amended do pass.
CONTENTS
Page
Purpose and Summary.............................................. 3
Background and Need for Legislation.............................. 3
Section-by-Section Analysis...................................... 5
Hearings......................................................... 6
Committee Consideration.......................................... 6
Committee Votes.................................................. 6
Statement of Oversight Findings and Recommendations of the
Committee...................................................... 8
Statement of Performance Goals and Objectives.................... 8
New Budget Authority and CBO Cost Estimate....................... 8
Committee Cost Estimate.......................................... 8
Unfunded Mandate Statement....................................... 8
Advisory Committee............................................... 8
Application of Law to the Legislative Branch..................... 9
Earmark Statement................................................ 9
Duplication of Federal Programs.................................. 9
Changes to Existing Law.......................................... 9
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Stop Debt Collection Abuse Act of
2019''.
SEC. 2. 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--
``(A) any obligation or alleged obligation of a
consumer 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; or
``(B) any obligation or alleged obligation of a
consumer--
``(i) to pay a loan, an overpayment, a fine,
a penalty, a fee, or other money currently or
originally owed to a Federal agency; and
``(ii) that is not less than 180 days past
due.''; and
(3) in paragraph (6)--
(A) by striking the first sentence and inserting the
following: ``The term `debt collector' means 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; 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; or who regularly
collects debts currently or originally owed or
allegedly owed to a Federal agency.''; and
(B) in subparagraph (F), by inserting ``or that has
been obtained by assignment or transfer from another''
after ``owed or due another''.
SEC. 3. DEBT COLLECTION PRACTICES FOR DEBT COLLECTORS HIRED BY
GOVERNMENT 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 sell or transfer a debt described
in section 803(5)(B) to a debt collector not 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. 4. 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 agency; and
``(iii) not greater than 10 percent of the
amount collected by the debt collector.''.
SEC. 5. GOVERNMENT ACCOUNTABILITY OFFICE STUDY AND REPORT.
(a) Study.--The Comptroller General of the United States shall
commence a study on the use of debt collectors by State and local
government agencies, including--
(1) the powers given to the debt collectors by Federal,
State, and local government agencies;
(2) the contracting process that allows a Federal, State, or
local 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 State level that offer
recourse to those whom debts have been wrongfully attributed;
(6) the revenues received by debt collectors from Federal,
State, and local government agencies;
(7) the amount of any revenue sharing agreements between debt
collectors and Federal, State, and local 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; and
(9) any legal immunity or other protections given to the debt
collectors hired by State and local government agencies,
including whether the debt collectors are subject to the Fair
Debt Collection Practices Act (15 U.S.C. 1692 et seq.).
(b) Report.--Not later than one 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).
Purpose and Summary
On September 19, 2019, Representative Emanuel Cleaver, II
(D-MO) introduced H.R. 4403, the ``Stop Debt Collection Abuse
Act of 2019,'' which extends the protections in the Fair Debt
Collection Practices Act (FDCPA) as it relates to debt owed to
a federal agency, and limits the fees debt collectors can
charge. The legislation clarifies that debt buyers are subject
to FDCPA and requires a GAO study on the use of debt collectors
by state and local government agencies. Representative French
Hill (R-AK) was the Republican sponsor of the bill.
Background and Need for Legislation
Currently, the FDCPA makes it illegal for debt collectors
to use abusive, unfair, or deceptive practices when collecting
debts from consumers. As discussed at a September 2019 House
Financial Services Committee hearing on debt collection
practices,\1\ the FDCPA currently does not apply to debt
collectors hired by federal government entities. At the
hearing, April Kuehnhoff from the National Consumer Law Center
testified that extending FDCPA to debt collectors hired by
federal government entities is especially important because,
``collection by, or on behalf of, the government is already
unusually coercive as a result of the government's police power
and other means of seizing citizens' assets.''\2\ Therefore,
this legislation would close that loophole by amending the
FDCPA to make clear that protections from certain debt
collection practices also apply to debt collection agents hired
by the federal government.
---------------------------------------------------------------------------
\1\Subcommittee on Consumer Protection and Financial Institutions
hearing, ``Examining Legislation to Protect Consumers and Small
Business Owners from Abusive Debt Collection Practices,'' Sep. 26,
2019.
\2\See Testimony of April Kuehnhoff, National Consumer Law Center
before Subcommittee on Consumer Protection and Financial Institutions
hearing, ``Examining Legislation to Protect Consumers and Small
Business Owners from Abusive Debt Collection Practices,'' at 38, Sep.
26, 2019.
---------------------------------------------------------------------------
Debt collection is one of the top complaints the CFPB hears
about on an annual basis. In 2019 alone, the CFPB handled
approximately 75,200 debt collection complaints related to
first-party and third-party collections, one of the most
complaints by volume received by the Bureau.\3\ Within debt
collection complaints, the most common complaint from consumers
was that a company was attempting to collect a debt that the
consumer didn't even owe. The next two most common complaint
issues were, respectively, a lack of written notifications
about the debt, and taking or threatening a negative or legal
action when it was not warranted.
---------------------------------------------------------------------------
\3\CFPB, Consumer Financial Protection Bureau Releases Report on
2019 Administration of the Fair Debt Collection Practices Act;
Announces Extension of Comment Period (Mar. 20, 2020), https://
www.consumerfinance.gov/about-us/newsroom/cfpb-releases-2019-
administration-fair-debt-collection-practices-act-report.
---------------------------------------------------------------------------
Debt collection lawsuits are another pressing problem that
was discussed during the committee hearing. The National
Consumer Law Center found that debt collectors obtain default
judgments against consumers in an overwhelming majority of debt
collection cases.\4\ Incredibly, very often these judgments
occur without debt collectors having to present any substantive
evidence. Debt collectors prey on vulnerable consumers,
including African-American and Hispanic households. A recent
investigation showed that in the three cities of Chicago,
Newark, and St. Louis, the rate of judgments in debt collection
lawsuits was two times as high in African-American
neighborhoods as compared to White neighborhoods.\5\
Furthermore, the Urban Institute recently found that 71 million
consumers had a debt in collection showing up on their credit
report, which is nearly a third of all adults with credit
reports.\6\ The Committee witnesses testified about how being
subject to debt collection can cause immense stress and
uncertainty, especially when a consumer is subject to
harassment through threats of a lawsuit or some other type of
negative action against the consumer.
---------------------------------------------------------------------------
\4\National Consumer Law Center, Consumer Debt Collection Facts
(Feb. 2018), https://www.nclc.org/issues/consumer-debt-collection-
facts.html.
\5\ProPublica, The Color of Debt: How Collection Suits Squeeze
Black Neighborhoods (Oct. 8, 2020) https://www.propublica.org/article/
debt-collection-lawsuits-squeeze-black-neighborhoods.
\6\Urban Institute, 71 million US adults have debt in collections
(Jul. 19, 2018) https://www.urban.org/urban-wire/71-million-us-adults-
have-debt-collections.
---------------------------------------------------------------------------
This legislation makes clear that overpayment, fines,
penalties, and fees owed by private individuals to federal
government entities would be considered ``consumer debts'' that
fall under the FDCPA's protections. This legislation also
prevents private debt collectors from charging exorbitant and
unfair fees, and it would ensure that fees from debt collectors
working on behalf of the federal government cannot be greater
than a certain percentage of the amount collected, and that the
amount is reasonable. This legislation also confirms that debt
buyers are debt collectors for the purposes of the FDCPA, and
it sets forth requirements that would prevent debt collectors
from taking aggressive action unnecessarily quickly after a
debt has allegedly gone unpaid.
This legislation will create a level playing field by
extending the FDCPA's consumer protections to include those
companies collecting on debt owed to a federal agency. The bill
curbs excessive fees debt collectors can charge, and it
requires a GAO study on the use of debt collectors by state and
local government agencies, so we can see how these types of
debts are collected, informing future efforts to strengthen
protections for consumers.
The legislation is similar to a bipartisan bill from the
115th Congress, H.R. 864, that was sponsored by former Reps.
Mia Love and Keith Ellison as well as Reps. Cleaver and Hill.
Furthermore, this legislation is supported by over 20 civil
rights and consumer rights groups, including Americans for
Financial Reform, Allied Progress, California Reinvestment
Coalition, Consumer Action, Consumer Federation of America,
Consumer Reports, Florida Alliance for Consumer Protection,
Illinois Asset Building Group, Legal Services of New Jersey,
Maryland Consumer Rights Coalition, NAACP, National Association
of Consumer Advocates, National Center for Law and Economic
Justice, National Consumer Law Center, Public Citizen, Public
Justice Center, Public Law Center, Statewide Poverty Action
Network, and Tennessee Citizen Action.
Section-by-Section Analysis
Section 1. Short title
This section provides that H.R. 4403 may be cited as the
``Stop Debt Collection Abuse Act of 2019''.
Section 2. Definitions
Section 2 amends Section 803 of the Fair Debt Collection
Practices Act to make certain technical edits, and to include,
as part of the definition of debt, any obligation or alleged
obligation by a consumer to pay a loan, an overpayment, a fine,
a penalty, a fee, or other money currently or originally owed
to a Federal agency that is past due for a certain length of
time.
Section 3. Debt collection practices for debt collectors hired by
government agencies
Section 3 amends the FDCPA to place a limitation on Federal
agencies that are creditors to sell or transfer a debt covered
by this legislation for a certain period of time. This section
also requires the Federal agency to notify the consumer not
fewer than 3 times when a debt is transferred or sold, and
requires these notices to not be sent out less than 30 days
apart.
Section 4. Unfair practices
Section 4 amends Section 808 of the FDCPA to require that
collections of any covered account can only occur when
expressly authorized by the agreement creating the debt or
permitted by law. Furthermore, when the amount is charged by
the debt collector, this section requires that the charge is
reasonable in relation to the actual costs of the collection,
authorized by a contract between the debt collector and the
Federal agency, and not greater than a certain percent of the
amount collected by the debt collector.
Section 5. GAO study and report
Section 5 requires the Government Accountability Office
(GAO) to conduct a study on the use of debt collectors by State
and local government agencies, and submit, within one year of
enactment of this legislation, a report to Congress on the
completed study.
Hearings
For the purposes of section 103(i) of H. Res. 6 for the
116th Congress, on September 26, 2019, the Committee on
Financial Services held a hearing entitled, ``Examining
Legislation to Protect Consumers and Small Business Owners from
Abusive Debt Collection Practices'' to discuss ten bills,
including seven discussion drafts. H.R. 4403 was considered.
This single-panel hearing included the following witnesses: the
Honorable Rohit Chopra, Commissioner, Federal Trade Commission;
Rev. Dr. Cassandra Gould, Pastor, Quinn Chapel A.M.E. Church
and Executive Director, Missouri Faith Voices; Ms. Bhairavi
Desai, Executive Director, New York Taxi Workers Alliance; Ms.
April Kuehnhoff, Staff Attorney, National Consumer Law Center;
Professor Dalie Jimenez, Professor of Law, University of
California, Irvine School of Law; Ms. Sarah Auchterlonie,
Shareholder, Brownstein Hyatt Farber Shreck; and Mr. John H.
Bedard, Jr., Owner, Bedard Law Group, P.C.
Committee Consideration
The Committee on Financial Services met in open session on
November 13, 2019, and ordered H.R. 4403 to be reported
favorably to the House without an amendment in the nature of a
substitute by a unanimous recorded vote of 54 yeas and 0 neas,
a quorum being present.
Committee Votes and Roll Call Votes
In compliance with clause 3(b) of rule XIII of the Rules of
the House of Representatives, the Committee advises that the
following roll call votes occurred during the Committee's
consideration of H.R. 4403:
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Statement of Oversight Findings and Recommendations of the Committee
In compliance with clause 3(c)(1) of rule XIII and clause
2(b)(1) of rule X of the Rules of the House of Representatives,
the Committee's oversight findings and recommendations are
reflected in the descriptive portions of this report.
Statement of Performance Goals and Objectives
Pursuant to clause (3)(c) of rule XIII of the Rules of the
House of Representatives, the goals of H.R. 4403 are to extend
the protections in the Fair Debt Collection Practices Act
(FDCPA) as it relates to debt owed to a federal agency, and to
limit the fees debt collectors can charge. The legislation also
clarifies that debt buyers are subject to FDCPA and requires a
GAO study on the use of debt collectors by state and local
government agencies.
New Budget Authority and CBO Cost Estimate
Pursuant to clause 3(c)(2) of rule XIII of the Rules of the
House of Representatives and section 308(a) of the
Congressional Budget Act of 1974, and pursuant to clause
3(c)(3) of rule XIII of the Rules of the House of
Representatives and section 402 of the Congressional Budget Act
of 1974, the Committee has requested an estimate for H.R. 4403
from the Director of the Congressional Budget Office. CBO was
unable to provide an estimate in a timely manner.
Committee Cost Estimate
Clause 3(d)(1) of rule XIII of the Rules of the House of
Representatives requires an estimate and a comparison of the
costs that would be incurred in carrying out H.R. 4403.
However, clause 3(d)(2)(B) of that rule provides that this
requirement does not apply when the committee has included in
its report a timely submitted cost estimate of the bill
prepared by the Director of the Congressional Budget Office
under section 402 of the Congressional Budget Act, which is
attached. After careful review, including discussions with CBO,
and after consulting with debt collection experts, the
Committee estimates that this legislation will have an
insignificant effect on spending, due to the fact that the
percent cap on fees applies to only debts that are charged by a
debt collector, and not by the Federal agency.
Unfunded Mandate Statement
Pursuant to Section 423 of the Congressional Budget and
Impoundment Control Act (as amended by Section 101(a)(2) of the
Unfunded Mandates Reform Act, Pub. L. 104-4), the Committee
does not believe H.R. 4403, as amended, contains any unfunded
mandates and adopts any future estimate in this regard prepared
by the Director of the Congressional Budget Office.
Advisory Committee
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Application of Law to the Legislative Branch
Pursuant to section 102(b)(3) of the Congressional
Accountability Act, Pub. L. No. 104-1, H.R. 4403, as amended,
does not apply to terms and conditions of employment or to
access to public services or accommodations within the
legislative branch.
Earmark Statement
In accordance with clause 9 of rule XXI of the Rules of the
House of Representatives, H.R. 4403 does not contain any
congressional earmarks, limited tax benefits, or limited tariff
benefits as described in clauses 9(e), 9(f), and 9(g) of rule
XXI.
Duplication of Federal Programs
Pursuant to clause 3(c)(5) of rule XIII of the Rules of the
House of Representatives, the Committee states that no
provision of H.R. 4403 establishes or reauthorizes a program of
the Federal Government known to be duplicative of another
federal program, a program that was included in any report from
the Government Accountability Office to Congress pursuant to
section 21 of Public Law 111-139, or a program related to a
program identified in the most recent Catalog of Federal
Domestic Assistance.
Changes to Existing Law
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, H.R. 4403, as reported, are shown as follows:
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italics, and existing law in which no
change is proposed is shown in roman):
FAIR DEBT COLLECTION PRACTICES ACT
* * * * * * *
TITLE VIII--DEBT COLLECTION PRACTICES
Sec.
801. Short title.
* * * * * * *
812. Furnishing certain deceptive forms.
812A. Debt collection practices for debt collectors hired by Federal
agencies.
* * * * * * *
Sec. 803. Definitions
As used in this title--
(1) The term ``Bureau'' means the Bureau of Consumer
Financial Protection.
(2) The term ``communication'' means the conveying of
information regarding a debt directly or indirectly to
any person through any medium.
(3) The term ``consumer'' means any natural person
obligated or allegedly obligated to pay any debt.
(4) The term ``creditor'' means any person who offers
or extends credit creating a debt or to whom a debt is
owed, but such term does not include any person to the
extent that he receives an assignment or transfer of a
debt in default solely for the purpose of [facilitating
collection of such debt for another] collection of such
debt.
[(5) The term ``debt'' means any obligation or
alleged obligation of a consumer 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.]
(5) The term ``debt'' means--
(A) any obligation or alleged obligation of a
consumer 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;
or
(B) any obligation or alleged obligation of a
consumer--
(i) to pay a loan, an overpayment, a
fine, a penalty, a fee, or other money
currently or originally owed to a
Federal agency; and
(ii) that is not less than 180 days
past due.
(6) [The term ``debt collector'' means 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, or who regularly collects
or attempts to collect, directly or indirectly, debts
owed or due or asserted to be owed or due another.] The
term ``debt collector'' means 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; 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; or who regularly collects debts currently
or originally owed or allegedly owed to a Federal
agency. Notwithstanding the exclusion provided by
clause (F) of the last sentence of this paragraph, the
term includes any creditor who, in the process of
collecting his own debts, uses any name other than his
own which would indicate that a third person is
collecting or attempting to collect such debts. 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. The term does not include--
(A) any officer or employee of a creditor
while, in the name of the creditor, collecting
debts for such creditor;
(B) any person while acting as a debt
collector for another person, both of whom are
related by common ownership or affiliated by
corporate control, if the person acting as a
debt collector does so only for persons to whom
it is so related or affilated and if the
principal business of such person is not the
collection of debts;
(C) any officer or employee of the United
States or any State to the extent that
collecting or attempting to collect any debt is
in the performance of his official duties;
(D) any person while serving or attempting to
serve legal process on any other person in
connection with the judicial enforcement of any
debt;
(E) any nonprofit organization which, at the
request of consumers, performs bona fide
consumer credit counseling and assists
consumers in the liquidation of their debts by
receiving payments from such consumers and
distributing such amounts to creditors;
(F) any person collecting or attempting to
collect any debt owed or due or asserted to be
owed or due another or that has been obtained
by assignment or transfer from 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.
(7) The term ``location information'' means a
consumer's place of abode and his telephone number at
such place, or his place of employment.
(8) The term ``State'' means any State, territory, or
possession of the United States, the District of
Columbia, the Commonwealth of Puerto Rico, or any
political subdivision of any of the foregoing.
* * * * * * *
Sec. 808. Unfair practices
A debt collector may not use unfair or unconscionable means
to collect or attempt to collect any debt. Without limiting the
general application of the foregoing, the following conduct is
a violation of this section:
[(1) The collection of any amount (including any
interest, fee, charge, or expense incidental to the
principal obligation) unless such amount is expressly
authorized by the agreement creating the debt or
permitted by law.]
(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
agency; and
(iii) not greater than 10 percent of
the amount collected by the debt
collector.
(2) The acceptance by a debt collector from any
person of a check or other payment instrument postdated
by more than five days unless such person is notified
in writing of the debt collector's intent to deposit
such check or instrument not more than ten nor less
than three business days prior to such deposit.
(3) The solicitation by a debt collector of any
postdated check or other postdated payment instrument
for the purpose of threatening or instituting criminal
prosecution.
(4) Depositing or threatening to deposit any
postdated check or other postdated payment instrument
prior to the date on such check or instrument.
(5) Causing charges to be made to any person for
communications by concealment of the true purpose of
the communication. Such charges include, but are not
limited to, collect telephone calls and telegram fees.
(6) Taking or threatening to take any nonjudicial
action to effect dispossession or disablement of
property if--
(A) there is no present right to possession
of the property claimed as collateral through
an enforceable security interest;
(B) there is no present intention to take
possession of the property; or
(C) the property is exempt by law from such
dispossession or disablement.
(7) Communicating with a consumer regarding a debt by
post card.
(8) Using any language or symbol, other than the debt
collector's address, on any envelope when communicating
with a consumer by use of the mails or by telegram,
except that a debt collector may use his business name
if such name does not indicate that he is in the debt
collection business.
* * * * * * *
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 sell or transfer a debt
described in section 803(5)(B) to a debt collector not 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.
* * * * * * *
MINORITY VIEWS
Committee Republicans believe consumers who owe a debt
should be protected from abusive practices or harassment by
debt collectors. This includes consumers who owe a debt to the
federal government.
In the November 2019 Financial Services Committee markup,
Committee Republicans supported H.R. 4403, which extended the
protections set out in the Fair Debt Collection Practices Act
(FCDPA) to debt collected by the federal government. However,
Committee Democrats did not act on the bill for more than a
year after it was reported out of the Financial Services
Committee by a vote of 54-0.
During the intervening twelve months, the Consumer
Financial Protection Bureau (CFPB) issued its final Debt
Collection Practices Rule (Rule). The Rule is the result of
more than seven years of research and analysis conducted by the
CFPB. It sets forth clear rules of the road for both consumers
and debt collection agencies outlining acceptable
communications. However, in promulgating its final Rule, the
CFPB declined to extend the definition of debt and debt
collectors to include creditors, debt buyers, or federal agency
debt. This put H.R. 4403 in conflict with the Rule.
Committee Republicans support the CFPB's Rule, including
the definition of debt and debt collector. The Rule reflects
the technical precision needed to ensure that both consumers
and debt collectors are protected.
Committee Republicans encourage Democrats to amend H.R.
4403 to ensure consistency with the CFPB's Rule. Moreover,
without such an amendment, Committee Republicans are concerned
H.R. 4403 may impact issues, like federal student loan debt,
which is outside this Committee's jurisdiction and better
addressed by the Committee on Education and Labor.
For these reasons, Committee Republicans must oppose H.R.
4403.
Patrick T. McHenry.
Bill Posey.
Bill Huizenga.
Ann Wagner.
Scott R. Tipton.
J. French Hill.
Lee M. Zeldin.
Alexander X. Mooney.
Ted Budd.
Trey Hollingsworth.
John W. Rose.
Lance Gooden.
William R. Timmons, IV.
Frank D. Lucas.
Blaine Luetkemeyer.
Steve Stivers.
Andy Barr.
Roger Williams.
Tom Emmer.
Barry Loudermilk.
Warren Davidson.
David Kustoff.
Anthony Gonzalez.
Bryan Steil.
Denver Riggleman.
Van Taylor.
[all]