[House Report 117-23]
[From the U.S. Government Publishing Office]


117th Congress    }                                    {       Report
                        HOUSE OF REPRESENTATIVES
 1st Session      }                                    {       117-23

======================================================================

 
             COMPREHENSIVE DEBT COLLECTION IMPROVEMENT ACT

                                _______
                                

 April 30, 2021.--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. 2547]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Financial Services, to whom was referred 
the bill (H.R. 2547) to expand and enhance consumer, student, 
servicemember, and small business protections with respect to 
debt collection practices, and for other purposes, having 
considered the same, reports favorably thereon with an 
amendment and recommends that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................    10
Background and Need for Legislation..............................    10
Section-by-Section Analysis......................................    19
Hearings.........................................................    24
Committee Consideration..........................................    26
Committee Votes..................................................    26
Statement of Oversight Findings and Recommendations of the 
  Committee......................................................    29
Statement of Performance Goals and Objectives....................    29
New Budget Authority and CBO Cost Estimate.......................    29
Committee Cost Estimate..........................................    29
Unfunded Mandate Statement.......................................    29
Advisory Committee...............................................    29
Application of Law to the Legislative Branch.....................    30
Earmark Statement................................................    30
Duplication of Federal Programs..................................    30
Changes to Existing Law..........................................    30
Minority Views...................................................    86

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

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--EFFECTIVE DATE

Sec. 901. Effective date.

              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) regardless of whether such obligation is absolute or 
        contingent;
          ``(2) that includes the right of the person providing the 
        money to an equitable remedy for breach of performance if the 
        breach gives rise to a right to payment; and
          ``(3) regardless of whether the obligation or right to an 
        equitable remedy described in paragraph (2) has been reduced to 
        judgment, fixed, contingent, 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 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).

            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, 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 owed or due or asserted to be owed or 
        due by a consumer, 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; and
          ``(11) 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 allows a debt 
collector to send unlimited email and text messages to a consumer.''.
  (c) Protection of Consumers From Unlimited Texts and Emails 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 consumer electronically (including by 
        email or text message) without consent of the consumer to 
        communicate via that method, after such consent has been 
        withdrawn, or more frequently than the consumer consents to be 
        contacted.''.
  (d) 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,''.
  (e) 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 phone;
          ``(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.''; 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 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. 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, 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;
          (9) information regarding the amount collected by Federal, 
        State, and local 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, State, and local 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 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).

         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 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--EFFECTIVE DATE

SEC. 901. EFFECTIVE DATE.

  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.

                          Purpose and Summary

    On April 15, 2021, Chairwoman Maxine Waters introduced H.R. 
2547, the ``Comprehensive Debt Collection Improvement Act,'' 
which would amend the Fair Debt Collection Practices Act 
(FDCPA), the Truth in Lending Act (TILA), the Fair Credit 
Reporting Act (FCRA), and the Consumer Financial Protection 
Act, as well as reverse the recent Supreme Court decision in 
Obduskey v. McCarthy and Holthus LLP\1\ in order to provide 
important protections for small businesses, servicemembers, 
students, and other consumers against the mistreatment and 
harassment by certain debt collectors. H.R. 2547 includes 
measures originally sponsored by Representative Velazquez, 
Representative Dean, Representative Tlaib, Representative 
Pressley, Representative Cleaver, Representative Meeks, and 
Representative Auchincloss.
---------------------------------------------------------------------------
    \1\Obduskey v. McCarthy & Holthus LLP, 586 U.S.----, (2019).
---------------------------------------------------------------------------

                  Background and Need for Legislation

    In a recent Consumer Financial Protection Bureau (CFPB) 
report on debt collection, the CFPB notes that almost 26 
percent of Americans have an item in collections listed on 
their credit reports.\2\ Additionally, as discussed at hearings 
held in September 2019 and March 2021 by the House Committee on 
Financial Services (the Committee) on debt collection, nearly 
one in three Americans with a credit record indicated in a CFPB 
survey that they had been contacted by at least one creditor or 
collector trying to collect one or more debts.\3\ Many lenders 
or institutions contract with third-party debt collectors, who 
will work with, or pursue, consumers to settle the debt. The 
third-party debt collectors either purchase the debt, or 
contract with the lender to receive a portion of the paid debt. 
When a consumer is not able to settle a debt, the owner of the 
debt may seize collateral associated with the loan, such as a 
home for mortgage defaults or a vehicle for auto-loan defaults. 
For non-collateral loans, a debt owner may garnish a consumer's 
wages via a court order. Testimony before the Committee has 
shown that being subject to a variety of debt collection 
practices and tactics can cause immense stress and uncertainty, 
especially when a consumer is subject to abuse and harassment 
through threats of a lawsuit or some other type of negative 
action against the consumer.\4\
---------------------------------------------------------------------------
    \2\Consumer Financial Protection Bureau, Fair Debt Collection 
Practices Act, CFPB Annual Report 2021 (Mar. 2021).
    \3\See House Committee on Financial Services, Examining Legislation 
to Protect Consumers and Small Business Owners from Abusive Debt 
Collection Practices, 116th Cong. (Sept. 26, 2019); Subcommittee on 
Consumer Protection and Financial Institutions, Slipping Through the 
Cracks: Policy Options to Help America's Consumer During the Pandemic, 
117th Cong. (Mar. 11, 2021); see also Consumer Financial Protection 
Bureau, Consumer Experiences with Debt Collection, at 5 (Jan. 2017); 
Hanna Hassani & Signe-Mary McKernan, 71 Million US adults have debt in 
collections, Urban Institute (July 19, 2018).
    \4\House Committee on Financial Services, Testimony of April 
Kuehnhoff, Examining Legislation to Protect Consumers and Small 
Business Owners from Abusive Debt Collection Practices, 116th Cong., at 
38 (Sept. 26, 2019).
---------------------------------------------------------------------------
    During the coronavirus pandemic, many consumers and small 
businesses have struggled to keep up with their bills, while 
debt collectors have seen record profits.\5\ Amidst these 
developments, recent CFPB reporting reveals that its consumer 
complaint database received 82,700 consumer complaints 
regarding debt collection issues in 2020, a 10 percent increase 
from the previous year.\6\ These complaints frequently claim 
that the company was attempting collection on debt that was not 
even owed by the consumer.
---------------------------------------------------------------------------
    \5\See, e.g., Paul Kiel & Jeff Ernsthausen, Debt Collectors Have 
Made a Fortune This Year. Now They're Coming for More, ProPublica (Oct. 
5, 2020).
    \6\Consumer Financial Protection Bureau, Fair Debt Collection 
Practices Act, CFPB Annual Report 2021 (Mar. 2021).
---------------------------------------------------------------------------
    Research has demonstrated that abusive debt collection 
practices disproportionately harm communities of color and low-
income communities. For example, case studies from cities like 
Chicago, Newark, and St. Louis, as well as states like Maryland 
and New York, show debt collection lawsuits are concentrated in 
majority-minority communities.\7\ Additionally, recent research 
has shown that in debt collection litigation, almost all 
defendants are unable to secure legal representation. This is a 
significant problem, as research has also shown that when a 
defendant was represented by an attorney, the case was always 
dismissed--demonstrating how debt collectors regularly cannot 
prove they own the debt they are collecting on.\8\ Moreover, 
the CFPB found that in 2019 and 2020, they received more 
complaints regarding debt collection practices from consumers 
that reside in predominantly minority counties compared to 
those that live in predominantly white, non-Hispanic 
counties.\9\
---------------------------------------------------------------------------
    \7\See, e.g., Paul Kiel & Annie Waldman, The Color of Debt: How 
Collection Suits Squeeze Black Neighborhoods, ProPublica (Oct. 8, 
2020); Student Borrower Protection Center, The Long Legacy of Predatory 
Private Student Loans (Jan. 2021); Student Borrower Protection Center, 
Dubious Debts: Ending an era of illegal private student loan debt 
collection practices (Mar. 2021).
    \8\See, e.g., Center for Responsible Lending, Court System 
Overload: The State of Debt Collection in California after the Fair 
Debt Buyer Protection Act (Oct. 2020).
    \9\See Consumer Financial Protection Bureau, Complaint Bulletin: 
County-level demographic overview of consumer complaints (Apr. 2021).
---------------------------------------------------------------------------

Protecting Small Businesses

    Title I of H.R. 2547, which is designated as the Small 
Business Lending Fairness Act, would amend the TILA to codify 
protections that currently exist in consumer loans regarding a 
prohibition of the use of confessions of judgment, and to 
extend those protections to commercial loans to provide the 
same protections for small business owners.
    A ``confession of judgment'' is essentially an agreement by 
which a borrower agrees to an eventual judgment of liability 
against them, without normal due process protections such as 
notice, a hearing, and judicial review. For instance, merchant 
cash advance companies may require borrowers to sign a 
confession of judgment as a condition of receiving the cash 
advance. These cash advances can often cost the equivalent of 
400 percent or more in annualized interest. Once a borrower 
misses a payment or some other dispute arises between the 
borrower and lender, the lender can then send the signed 
confession of judgment to a county clerk, who enters judgment 
against the borrower. The lender can then take the judgment to 
the local marshal, who can demand the money allegedly owed to 
the lender from the borrower's bank. The lender can then take 
the money directly from the borrower's bank, with interest and 
fees added. At this point, a borrower's account will usually be 
frozen, in some cases despite a borrower's compliance with 
daily debt payments.
    Some states outlawed these instruments in the middle of the 
20th century, and the Federal Trade Commission (FTC) banned 
them for consumer loans in 1985 as part of a regulation known 
as the ``Credit Practices Rule.'' Small business loan borrowers 
do not enjoy the same protections individual consumers have at 
the federal level. Some small business loan terms include a 
confession of judgment, which can place additional burdens on 
small businesses struggling under the COVID-19 pandemic. As a 
result of these agreements, the debt holder may collect on such 
a contract, plus damages, immediately after the borrower falls 
behind in their payments. Confessions of judgment often force a 
borrower to relinquish defenses that could be used in court, 
allowing the debt holders to receive a court order to force the 
financial institution of the debtor to withdraw funds, access 
the debtor's wages, or seize goods or property, all without the 
debtor's knowledge or consent. Moreover, some small businesses 
have been harmed by confessions of judgement included in 
merchant cash advances, which some courts have ruled are not 
technically loans and thus not subject to state bans on the 
practice.
    The Committee received testimony from Bhairavi Desai, 
Executive Director of the New York Taxi Workers Alliance, and 
learned that in the experience of taxi drivers that received 
medallion loans, ``Confessions of Judgment [were] used to 
intimidate borrowers into making large sum payments toward 
outstanding loan balances or rush into refinancing agreements 
with interest, even interest-only provisions.''\10\
---------------------------------------------------------------------------
    \10\House Committee on Financial Services, Testimony of Bhairavi 
Desai, Examining Legislation to Protect Consumers and Small Business 
Owners from Abusive Debt Collection Practices, 116th Cong. (Sept. 26, 
2019). Also see Brian Rosenthal, ```They Were Conned': How Reckless 
Loans Devastated a Generation of Taxi Drivers,'' New York Times (May 
19, 2019).
---------------------------------------------------------------------------
    To address these issues, Title I of this bill amends TILA 
to codify FTC's prohibition on the use of confessions of 
judgment for consumers and extends those protections to small 
business borrowers, and applies the ban to merchant cash 
advances.
    This title is substantially similar to H.R. 2540, the Small 
Business Fairness Lending Act, introduced by Rep. Nydia 
Velazquez (D-NY), and S. 1119, introduced by Sens. Sherrod 
Brown (D-OH) and Marco Rubio (R-FL). This title is also similar 
to H.R. 3490 in the 116th Congress, sponsored by Rep. Velazquez 
and passed out of Committee on November 13, 2019 by a recorded 
vote of 31 yeas and 23 nays. Title I is supported by a range of 
consumer, civil rights, and small business groups, including 
Americans for Financial Reform, Center for Responsible Lending, 
Consumer Action, Consumer Federation of America, Consumer 
Reports, Empire Justice Center, Main Street Alliance, NAACP, 
National Association for Latino Community Asset Builders, 
National Association of Consumer Advocates, National Community 
Reinvestment Coalition (NCRC), National Consumer Law Center (on 
behalf of its low income clients), Opportunity Fund, 
Responsible Business Lending Coalition, Small Business 
Majority, and Woodstock Institute.

Protecting Servicemembers

    Title II of H.R. 2547, which is designated as the Fair Debt 
Collection Practices for Servicemembers Act, would amend the 
FDCPA to prohibit debt collectors from threatening a 
servicemember with reducing their rank, having their security 
clearance revoked, or prosecuting them under the Uniform Code 
of Military Justice.
    Approximately two out of every five complaints filed by 
servicemembers with the CFPB were about debt collection, and 
servicemembers were more likely to complain about debt 
collection than all consumers filing complaints at the 
CFPB.\11\ Abusive collection tactics include threatening 
punishment under the military's justice system, threatening 
reductions in rank, and threatening revocation of a security 
clearance.
---------------------------------------------------------------------------
    \11\See, e.g., House Committee on Financial Services, Testimony of 
April Kuehnhoff, Examining Legislation to Protect Consumers and Small 
Business Owners from Abusive Debt Collection Practices, 116th Cong. 
(Sept. 26, 2019).
---------------------------------------------------------------------------
    To address these issues, this title enhances FDCPA to 
prohibit debt collectors from threatening servicemembers about 
their outstanding debts, among other things. The title would 
cover active duty servicemembers, as well as servicemembers 
recently separated or discharged in the previous year. The 
title would also require a Government Accountability Office 
(GAO) study on the impact of debt collection on servicemembers.
    This title is substantially similar to H.R. 1491, the Fair 
Debt Collection Practices for Servicemembers Act, introduced by 
Rep. Madeleine Dean (D-PA). H.R. 1491 was passed by the House 
of Representatives under suspension of the rules on April 20, 
2021. This title is also similar to H.R. 5003 in the 116th 
Congress, sponsored by Rep. Dean and unanimously passed out of 
Committee on November 13, 2019 by a recorded vote of 31 yeas 
and 23 nays. This bipartisan bill passed unanimously by the 
House of Representatives on suspension in March 2, 2020. It is 
also similar to S. 3334, the Military Lending Improvement Act 
from the 115th Congress, sponsored by former Sen. Bill Nelson. 
Title II is supported by the National Military Family 
Association, Veterans Education Success, and Retired Army 
Colonel Paul Kantwill, the former CFPB Assistant Director for 
Servicemember Affairs.

Protecting Private Student Loan Borrowers With Disabilities

    Title III of H.R. 2547, which is designated as the Private 
Loan Disability Discharge Act, would amend TILA to include a 
required discharge of private student loans for both the 
borrower and cosigner in the case of permanent disability of 
the borrower.
    Federal student loans, generally provide greater 
protections than private student loans. For example, any loan 
that is issued by the federal government can be discharged in 
the event of permanent total disability of the borrower or in 
the event of death.\12\ By contrast, current law does not 
require that a private student loan lender discharge the 
student debt of a borrower or their cosigner in the case of 
permanent disability of the borrower. TILA currently requires 
the discharge of a student loan for the borrower and cosigner 
in the case of death of the borrower. Beyond this requirement, 
however, private student lenders are free to make any policy on 
discharge of debt in their promissory notes. There is no 
standard system for disability cancellations for private 
student loans.
---------------------------------------------------------------------------
    \12\See 20 U.S.C. Sec.  1087(a).
---------------------------------------------------------------------------
    In March 2021, the Committee held a hearing on the need for 
robust consumer protection as a result of this unprecedented 
COVID-19 pandemic, during which one witness testified that the 
private student loan market now stands at almost $130 billion 
and has been growing quickly over the last five years after a 
decline following the Great Recession.\13\ The witness further 
testified that ``[p]rivate student loans are generally risky 
and inferior from a consumer protection standpoint compared to 
federal student loans. Private student loan borrowers are 
unable to access such options as guaranteed income-based 
repayment and loan forgiveness plans, assistance for getting 
out of default and discharges for disability or death.''\14\
---------------------------------------------------------------------------
    \13\Subcommittee on Consumer Protection and Financial Institutions, 
Slipping Through the Cracks: Policy Options to Help America's Consumer 
During the Pandemic, 117th Cong. (Mar. 11, 2021).
    \14\Id.
---------------------------------------------------------------------------
    To provide greater protections for private student loan 
borrowers, this title would bring private student loans in line 
with federal student loans by amending TILA to include a 
required discharge of private student loans in the case of 
permanent and total disability of the borrower. Additionally, 
this title would allow cosigners to be discharged in the case 
of the borrower's permanent disability, and it would require 
private lenders who are notified that the federal government 
has discharged the federal student loans of a borrower to 
discharge the private student loans of that same borrower. 
Finally, this title would authorize the CFPB to issue rules to 
implement these changes. This bill uses the same definition for 
total and permanent disability as the standard for discharging 
federal student loans.
    This title is substantially similar to H.R. 2498, the 
Private Loan Disability Discharge Act, introduced by Rep. Dean. 
This title is also similar to H.R. 4545 in the 116th Congress, 
sponsored by Rep. Dean and passed out of Committee on December 
11, 2019 by a recorded vote of 32 yeas and 22 nays. This title 
is supported by the National Council on Independent Living, 
National Consumer Law Center (on behalf of its low-income 
clients), Center for Responsible Lending, and The Institute for 
College Access and Success (TICAS).

Protecting Consumers With Medical Debt

    Title IV of H.R. 2547, which is designated as the Consumer 
Protection for Medical Debt Collections Act, would amend FDCPA 
and FCRA to provide consumer protections for medical debts.
    Debt collectors increasingly contact individuals for their 
medical bills in relation to other forms of debt. The costs of 
treating illnesses and other medical conditions can cause 
consumers to avoid healthcare services and rely on over-the-
counter drugs rather than seeing a medical provider.\15\ 
Medical bills can be expensive for households, and the 
delinquency of payments can lead to individuals falling into 
bankruptcy and hurting their credit report.\16\ The American 
Journal of Public Health conducted a survey of bankruptcy 
filers between 2013 and 2016 and found that 59% of respondents 
agreed that medical debt played a role in their bankruptcy.\17\ 
The CFPB has also found that the medical pricing, billing, and 
reimbursement processes lack transparency and are prone to 
consumer confusion, which can result in consumers delaying or 
withholding payments until they have adequate time to clarify 
or resolve disputes with their insurance companies or medical 
service providers about what they actually owe. With the COVID-
19 pandemic affecting the health of over 30 million infected 
Americans, many of whom have and will take on medical debt to 
pay for their care, consumer protections associated with 
medical debts are badly needed.
---------------------------------------------------------------------------
    \15\See, e.g., Kaiser Family Foundation, Data Note: Americans' 
Challenges with Health Care Costs (Jun. 11, 2019).
    \16\See, e.g., House Committee on Financial Services, Testimony of 
Chi Chi Wu, Who's Keeping Score? Holding Credit Bureaus Accountable and 
Repairing a Broken System, 116th Cong., (Feb. 26, 2019); and House 
Committee on Financial Services, Testimony of April Kuehnhoff, 
Examining Legislation to Protect Consumers and Small Business Owners 
from Abusive Debt Collection Practices, 116th Cong., (Sept. 26, 2019).
    \17\National Consumer Law Center, Medical Debt Collection (accessed 
Apr. 10, 2021).
---------------------------------------------------------------------------
    Title IV would bar entities from collecting medical debt or 
reporting it to a consumer reporting agency without giving a 
consumer notice about their rights under FDCPA and FCRA, 
including a minimum one-year delay before adverse information 
is reported and a two-year delay before collection attempts 
after the date that the first payment is due. This title also 
bans the reporting of medical debt arising from medically 
necessary procedures.
    This title is substantially similar to H.R. 2537, the 
Consumer Protection for Medical Debt Collections Act, 
introduced by Rep. Rashida Tlaib (D-MI). This title is also 
similar to H.R. 5330 in the 116th Congress, which was also 
sponsored by Rep. Tlaib and passed out of Committee on December 
11, 2019 by a recorded vote of 31 yeas and 24 nays. This title 
is supported by Americans for Financial Reform, Center for 
Responsible Lending, Consumer Action, Consumer Federation of 
America, Consumer Reports, National Association of Consumer 
Advocates, National Consumer Law Center (on behalf of its low 
income clients), and U.S. PIRG.

Protecting Consumers Against Debt Collection Harassment

    Title V of H.R. 2547, which is designated as the Ending 
Debt Collection Harassment Act, would amend the Consumer 
Financial Protection Act of 2010 and the FDCPA to prohibit a 
debt collector from contacting a consumer by email or text 
message without a consumer's consent and provide other defenses 
against harassing communications.
    In May 2019, the CFPB released a notice of proposed 
rulemaking to establish guidelines on how communication may 
take place between debt collectors and consumers. The proposed 
rule would prohibit debt collectors from providing information 
to credit score furnishers without informing the debtor first. 
The proposed rule also permits up to seven collection calls a 
week, per debt,\18\ and would allow debt collectors to use 
other methods of communication to contact consumers, including 
unlimited email or text messages.\19\ Consumer groups have 
argued that the rule does not go far enough to protect 
consumers against predatory debt collection practices.\20\ This 
rule was finalized in October 2020, and in 2021 the interim 
leadership of the CFPB proposed a delay in the effective date 
of the rule, along with a delay in a disclosure-focused debt 
collection rule that was finalized in November 2020.
---------------------------------------------------------------------------
    \18\See Debt Collection Practices (Regulation F), 12 C.F.R. part 
1006 (proposed May 6, 2019) (to be codified at 12 C.F.R. part 1006).
    \19\Id.
    \20\See, e.g., House Committee on Financial Services, Testimony of 
April Kuehnhoff, Examining Legislation to Protect Consumers and Small 
Business Owners from Abusive Debt Collection Practices, 116th Cong. 
(Sept. 26, 2019).
---------------------------------------------------------------------------
    Title V would prohibit a debt collector from contacting a 
consumer by email or text message without a consumer's consent 
to be contacted electronically. It would also prohibit the CFPB 
from issuing any future rules implementing FDCPA that allows a 
debt collector to send unlimited email and text messages to a 
consumer. Furthermore, the bill would require the CFPB to 
analyze and annually report on the impact of electronic 
communications utilized by debt collectors, and would require 
CFPB to include in its Semi-Annual Report to Congress an 
analysis of consumer complaints, including a state-by-state 
breakdown of such complaints, and a list of recent enforcement 
actions taken against debt collectors.
    This title is substantially similar to H.R. 1657, the 
Ending Debt Collection Harassment Act, introduced by Rep. 
Ayanna Pressley (D-MA). This title is also similar to H.R. 5021 
in the 116th Congress, sponsored by Rep. Pressley and passed 
out of Committee on November 13, 2019 by a recorded vote of 31 
yeas and 23 nays. This title is supported by Americans for 
Financial Reform, Center for Responsible Lending, Consumer 
Action, Consumer Federation of America, Consumer Reports, 
National Association of Consumer Advocates, National Consumer 
Law Center (on behalf of its low income clients), and U.S. 
PIRG.

Protecting Consumers With Government-Owned Debts

    Title VI of H.R. 2547, which is designated as the Stop Debt 
Collection Abuse Act, would, among other things, extend the 
protections in the FDCPA as it relates to debt owed to a 
federal, state, territory, District of Columbia, and local 
government agency and limit the fees debt collectors can 
charge.
    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 
Committee hearing on debt collection practices, the FDCPA 
currently does not apply to debt collectors hired by federal 
government entities. At the hearing, one consumer advocate 
testified that extending FDCPA to debt collectors hired by 
federal government entities is 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.''\21\
---------------------------------------------------------------------------
    \21\Id. at 38.
---------------------------------------------------------------------------
    To address these issues, this title makes clear that 
overpayment, fines, penalties, and fees owed by private 
individuals to federal, state, territory, D.C., and local 
government entities would be considered ``consumer debts'' that 
fall under the FDCPA's protections. This title also prevents 
private debt collectors from charging exorbitant and unfair 
fees, and it would ensure that fees from debt collectors 
working on behalf of federal, state, territory, D.C., or local 
government entities are reasonable. This title 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 until 90 days after a 
debt has allegedly gone unpaid. Finally, this title would 
require the GAO to conduct a study into the use of third-party 
debt collectors by federal, state, and local government 
agencies.
    This title is similar to H.R. 2572, the Stop Debt 
Collection Abuse Act, introduced by Rep. Emanuel Cleaver (D-
MO). This title is also similar to H.R. 4403 in the 116th 
Congress, sponsored by Rep. Cleaver and unanimously passed out 
of Committee on November 13, 2019 by a recorded vote of 54 yeas 
and 0 nays. It is also similar to the bipartisan H.R. 864, from 
the 115th Congress, sponsored by former Reps. Mia Love and 
Keith Ellison as well as Reps. Cleaver and Hill. Furthermore, 
this title is supported by over twenty 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.
    Additionally, while this title's expansion of FDCPA to 
cover federal government agency debts originated from H.R. 
2572, the title's proposed FDCPA expansion to cover state, 
territory, D.C., and local government agency debts is similar 
to H.R. 2628, the Debt Collection Practices Harmonization Act, 
introduced by Rep. Gregory Meeks (D-NY). Other provisions 
similar to H.R. 2628 are included in Title VII as described 
below.

Protecting Consumers From Egregious Debt Collection Fees

    Title VII of H.R. 2547, which is designated as the Debt 
Collection Practices Harmonization Act, would amend the FDCPA 
to tie damages for violations to inflation and allow for 
injunctive relief.
    Enacted in 1977, Congress passed the FDCPA to protect 
consumers from unfair, deceptive, and abusive practices 
conducted by debt collectors. However, as discussed at a 
September 2019 Committee hearing on abusive debt collection 
practices, the FDCPA currently does not apply to debt 
collectors hired by state or local government entities. 
Furthermore, state and local governments faced with widening 
budget shortfalls are increasingly outsourcing the collection 
of fines and penalties to private debt collection firms. 
Private debt collection firms have been found to charge 
consumers large fees, including interest and penalties.
    To address these issues, this title would adjust monetary 
penalties for inflation and clarify that courts can award 
injunctive relief. Additionally, this title would prohibit the 
Treasury Department from hiring a third-party debt collector to 
recoup any Federal Emergency Management Agency (FEMA) 
assistance awarded to victims of natural disasters like 
Hurricanes Irma and Maria because of an overpayment, 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.
    This title is similar to H.R. 2628, the Debt Collection 
Practices Harmonization Act, introduced by Rep. Meeks. This 
title is also similar to H.R. 3498 in the 116th Congress, 
sponsored by Rep. Meeks and passed out of Committee on November 
13, 2019 by a recorded vote of 31 yeas and 23 nays. The 
National Consumer Law Center, Center for Responsible Lending, 
NAACP, and the National Urban League have endorsed this title.

Protecting Consumers Facing Non-Judicial Foreclosure

    Title VIII of H.R. 2547, which is designated as the Non-
Judicial Foreclosure Debt Collection Clarification Act, would 
reverse the recent Supreme Court decision in Obduskey v. 
McCarthy and Holthus LLP by amending the FDCPA to clarify that 
entities in non-judicial foreclosure proceedings are covered by 
the law.
    In March 2019, the Supreme Court held in Obduskey v. 
McCarthy & Holthus LLP that businesses engaged in non-judicial 
foreclosure do not qualify as debt collectors under the FDCPA. 
In that case, a homeowner in Colorado, which is a non-judicial 
foreclosure state, went through foreclosure proceedings, but 
the mortgage servicer's law firm refused to follow the FDCPA as 
it disputed that it was covered as a ``debt collector'' under 
the FDCPA. In its decision, although the Supreme Court 
acknowledged that non-judicial foreclosure would otherwise fit 
within the law's primary definition of ``debt collector,'' it 
held that the secondary definition of ``debt collector,'' which 
applies to the collection of a security interest, suggested 
that Congress intended for non-judicial foreclosure to be 
excluded from the broader definition.
    However, in a concurrence, Justice Sotomayor noted that it 
was ``too close a case for [her] to feel certain that Congress 
recognized that this complex statute would be interpreted the 
way that the Court does today'' and that Congress could clarify 
the statute if the Court got it wrong. Justice Sotomayor also 
highlighted the majority's acknowledgement that nothing in the 
Court's opinion ``suggest[s] that pursuing nonjudicial 
foreclosure is a license to engage in abusive debt collection 
practices like repetitive nighttime phone calls; enforcing a 
security interest does not grant an actor blanket immunity from 
the Act.''\22\
---------------------------------------------------------------------------
    \22\Obduskey v. McCarthy & Holthus LLP, 586 U.S._, (2019) 
(concurrence by Justice Sotomayor).
---------------------------------------------------------------------------
    This title would clarify the FDCPA to state that parties 
bringing proceedings against consumers in non-judicial 
foreclosure are covered by FDCPA as debt collectors. As 
consumers face the end of mortgage and other payment 
moratoriums offered to help consumers during the COVID-19 
pandemic, families will need these necessary protections.
    This title is substantially similar to H.R. 2458, the Non-
Judicial Foreclosure Debt Collection Clarification Act, 
introduced by Rep. Jacob Auchincloss (D-MA). This title is also 
similar to H.R. 5001 in the 116th Congress, sponsored by then-
Rep. Clay and passed out of Committee on November 13, 2019 by a 
recorded vote of 31 yeas and 23 nays. This title is supported 
by over twenty consumer, civil rights, labor, and community 
organizations, including Americans for Financial Reform, 
Consumer Federation of America, NAACP, National Association of 
Consumer Advocates, National Consumer Law Center, and Public 
Citizen.

Conclusion

    Abusive debt collection practices and inadequate federal 
oversight have long plagued consumers. The COVID-19 pandemic 
and its devastating health and economic ramifications have 
highlighted the precarious position millions of U.S. consumers 
and small businesses are in with respect to unscrupulous 
collectors. It is critical that Congress immediately enhance 
and expand protections to ensure borrowers are not subjected to 
the wide range of abuse and harassment by predatory debt 
collectors. H.R. 2547 is supported by a coalition of consumer 
groups, including the Americans for Financial Reform, Center 
for Responsible Lending, Consumer Action, Consumer Federation 
of America, Consumer Reports, National Association of Consumer 
Advocates, National Consumer Law Center (on behalf of its low 
income clients), Public Citizen, and U.S. PIRG.

                      Section-by-Section Analysis


Section 1. Short title

    This section states that the title of the bill is the 
Comprehensive Debt Collection Improvement Act.

              TITLE I--SMALL BUSINESS LENDING FAIRNESS ACT

Sec. 101. Short title

    This section states that the short title of Title I is the 
``Small Business Lending Fairness Act.''

Sec. 102. Obligor transactions

    This section amends Chapter 2 of the Truth in Lending Act 
(15 U.S.C. 1631 et seq.) by prohibiting any person--including 
consumers and small businesses--from directly or indirectly 
taking or receiving from another person--including lenders and 
merchant cash advance companies--an obligation that constitutes 
or contains a cognovit or confession of judgment, warrant of 
attorney, or other waiver of the right to notice and the 
opportunity to be heard in the event of a lawsuit or judicial 
process.

Sec. 103. Enforcement of security interests

    This section amends Section 103 of TILA (15 U.S.C. 1602) by 
clarifying the definition of ``debt'' as ``any obligation of a 
person to pay to another person money.'' This definition would 
apply regardless of whether the obligation is absolute or 
contingent. This definition includes the right of the person 
providing the money to an equitable remedy for breach of 
performance if the breach gives rise to a right to payment. 
This definition would also apply regardless of whether the 
obligation or right to an equitable remedy has been reduced to 
judgment, fixed, contingent, matured, unmatured, disputed, 
undisputed, recourse, nonrecourse, secured, or unsecured.

    TITLE II--FAIR DEBT COLLECTION PRACTICES FOR SERVICEMEMBERS ACT

Sec. 201. Short title

    This section states that the short title of Title II is the 
``Fair Debt Collection Practices for Servicemembers Act.''

Sec. 202. Enhanced protection against debt collector harassment of 
        servicemembers

    This section prohibits debt collectors from threatening a 
servicemember with reducing their rank, having their security 
clearance revoked, or prosecuting them under the Uniform Code 
of Military Justice regarding an outstanding debt. This section 
also clarifies these actions are an unfair practice under the 
FDCPA. In addition to active servemembers, this section also 
covers an individual who has separated, discharged, or released 
from duty in the previous year.

Sec. 203. GAO study and report

    This section directs the Government Accountability Office 
(GAO) to conduct a study and submit a report to Congress within 
one year identifying the types of false, deceptive, misleading, 
unfair, abusive, and harassing debt collection practices 
experienced by servicemembers and making recommendations to 
eliminate these practices; identifying collection practices of 
creditors and debt collectors experienced by covered members; 
analyzing the effect of these practices on military readiness 
and any national security implications.

            TITLE III--PRIVATE LOAN DISABILITY DISCHARGE ACT

Sec. 301. Short title

    This section states that the short title of Title III is 
the ``Private Loan Disability Discharge Act of 2021.''

Sec. 302. Protections for obligors and cosigners in case of death or 
        total and permanent disability

    This section amends Section 140(g) of TILA to include a 
required discharge of private student loans in the case of 
permanent and total disability of the borrower. It adds the 
cosigner discharge in the case of the borrower's permanent 
disability. It requires private lenders who are notified that 
the federal government has discharged the federal student loans 
of a borrower to discharge the private student loans of that 
same borrower. This section gives the CFPB Director the power 
to issue rules to implement these changes. This section uses 
the same definition for total and permanent disability as the 
standard for discharging federal student loans.

     TITLE IV--CONSUMER PROTECTION FOR MEDICAL DEBT COLLECTIONS ACT

Sec. 401. Short title

    This section states that the short title of Title IV is the 
``Consumer Protection for Medical Debt Collections Act.''

Sec. 402. Amendments to the Fair Debt Collection Practices Act

    This section amends Sections 803 and 808 of the Fair Debt 
Collection Practices Act. Susbsection (a) amends section 803 by 
adding a definition for medical debt.
    Subsection (b) makes it an unfair practice under the FDCPA 
for debt collectors to collect or attempt to collect medical 
debt owed before two years after the first payment is due.

Sec. 403. Prohibition on consumer reporting agencies reporting certain 
        medical debt

    This section amends sections 603 and 605(a) of the Fair 
Credit Reporting Act. Subsection (a) amends section 603 by 
adding a definition of medical debt and a medically necessary 
procedure.
    Subsection (b) bans an entity from reporting information 
related to a debt arising from a medically necessary procedure. 
It also requires a minimum one-year delay before adverse 
information is reported on any other medical debt.

Sec. 404. Requirements for furnishers of medical debt information

    This section amends section 623 of the Fair Credit 
Reporting Act to require that the entity reporting the medical 
debt of a consumer to a consumer reporting agency will, prior 
to reporting the debt, send the consumer a disclosure that 
informs the consumer that medical debt may not be reported to a 
CRA until the end of the one year period of the medical debt 
statement or the last day a consumer made a payment on the 
medical debt and that the debt may never be reported if it 
arises from a medically necessary procedure. The entity must 
also send a notification to the consumer that says if the debt 
is paid or settled by the consumer or insurance company before 
the end of the one year period described above, the debt may 
not be reported to a CRA and that the consumer has the right to 
contact their insurance agency to determine debt coverage.

             TITLE V--ENDING DEBT COLLECTION HARASSMENT ACT

Sec. 501. Short title

    This section states that the short title of Title V is the 
``Ending Debt Collection Harassment Act of 2021.''

Sec. 502. Consumer protections relating to debt collection practices

    This section amends the Consumer Financial Protection Act 
of 2010 and FDCPA. Subsection (a)(1) amends section 1016(c) of 
the Consumer Financial Protection Act of 2010 (12 U.S.C. 5496) 
by requiring the CFPB's semi-annual report to Congress to 
include an analysis of debt collection consumer complaints 
received by the Bureau, including a state-by-state breakdown of 
such complaints, and a list of enforcement actions taken 
against debt collectors during the preceding year.
    Subsection (a)(2) amends section 815(a) of FDCPA (15 U.S.C. 
1692m) by requiring the CFPB's annual report to Congress to 
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.
    Subsection (b) amends section 1022 of the Consumer 
Financial Protection Act of 2010 (12 U.S.C. 5512) by 
prohibiting the CFPB Director from issuing any rule with 
respect to debt collection that allows a debt collector to send 
unlimited email and text messages to a consumer.
    Subsection (c) amends section 806 of the Fair Debt 
Collection Practices Act (15 U.S.C. 1692d) by prohibiting debt 
collectors from contacting consumers electronically, including 
by email or text message, without consent of the consumer, 
after such consent has been withdrawn, or more frequently than 
the consumer consents to be contacted.
    Subsection (d) amends section 809(a) of FDCPA (15 U.S.C. 
1692g(a)) by ensuring that consumers receive notice of debt 
collection protections, regardless of whether that information 
is contained in the initial communication or the consumer has 
paid the debt.
    Subsection (e) amends section 814(d) of FDCPA (15 U.S.C. 
1692l(d)) by prohibiting CFPB from prescribing rules that allow 
a debt collector to send unlimited electronic communications to 
a consumer. This amendment also requires CFPB to prescribe 
rules that require debt collectors to obtain consent directly 
from consumers before contacting them using a method other than 
by postal mail or by phone. Under the amendments made by this 
subsection, the CFPB is prohibited from waiving the 
requirements of the Electronic Signatures in Global and 
National Commerce Act. The amendments made by this section also 
require the CFPB to prescribe rules that 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 section states that the title of Title VI is the 
``Stop Debt Collection Abuse Act of 2021.''

Sec. 602. Definitions

    This section amends Section 803 of FDCPA 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 restitution, a 
fee, or other money currently or originally owed to a Federal, 
State, territory, D.C. or local government, including any 
courts or agencies and includes, as part of the definition of 
debt collector, any person who regularly collects debts 
currently or originally owed to a government agency or court.

Sec. 603. Debt collection practices for debt collectors hired by 
        Federal agencies

    This section 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.

Sec. 604. Unfair practices

    This section 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, among other things, requires 
that the charge is reasonable in relation to the actual costs 
of the collection and authorized by a contract between the debt 
collector and a Federal, State, territory, D.C. or local 
government.

Sec. 605. GAO study and report

    This section requires GAO to conduct a study on the use of 
debt collectors by Federal, State, and local government 
agencies, and submit, within one year of enactment of this 
legislation, a report to Congress on the completed study.

         TITLE VII--DEBT COLLECTION PRACTICES HARMONIZATION ACT

Sec. 701. Short title

    This section states that the title of Title VII is the 
``Debt Collection Practices Harmonization Act.''

Sec. 702. Award of damages

    This section amends Section 813 of FDCPA to provide annual 
adjustments for inflation for the amount of damages that a debt 
collector who fails to comply with the provisions in the Act 
must pay. This section also allows for a court to award 
injunctive relief in a civil action alleging a violation of 
this title.

Sec. 703. Prohibition on the referral of emergency individual 
        assistance debt.

    This section adds a section at the end of subchapter II of 
Chapter 3 of title 31, United States Code, ``Prohibition on the 
referral of emergency individual assistance debt.'' This 
section prohibits the Secretary of Treasury from contracting 
with any debt collector or other private party to collect 
overpayment of FEMA assistance, unless the overpayment occurred 
because of fraud or deceit that the recipient should have known 
about.

 TITLE VIII--NON-JUDICIAL FORECLOSURE DEBT COLLECTION CLARIFICATION ACT

Sec. 801. Short title

    This section states that the title of Title VIII is the 
``Non-Judicial Foreclosure Debt Collection Clarification Act.''

Sec. 802. Enforcement of security interests

    This section amends Section 803(6) of FDCPA (15 U.S.C. 
1692a(6)) by clarifying the definition of ``debt collector'' to 
not include ``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--EFFECTIVE DATE

Sec. 901. Effective date

    This section states that the amendments of this bill shall 
take effect 180 days after the date of enactment.

                                Hearings

    For the purposes of section 3(c)(6) of House Rule XIII, the 
following hearing was used to consider H.R. 2547:
    (1) On March 11, 2021, the Subcommittee on Consumer 
Protection and Financial Institutions held a hearing entitled, 
``Slipping Through the Cracks: Policy Options to Help America's 
Consumers During the Pandemic,'' which considered a number of 
measures that assembled into H.R. 2547. The witnesses at this 
subcommittee hearing consisted of Ashley Harrington, Federal 
Advocacy Director and Senior Counsel, Center for Responsible 
Lending (CRL); Robert E. James, II, President, Carver 
Development CDE, and Chairman, National Bankers Association; 
Carla Sanchez-Adams, Attorney, Team Manager of Survivor-
Centered Economic Advocacy Team, Texas RioGrande Legal Aid; 
Valarie Shultz-Wilson, Managing Partner, Shultz&Co Non-Profit 
Management Consultants; and Joel Griffith, Research Fellow, 
Financial Regulations, The Roe Institute for Economic Policy 
Studies, The Heritage Foundation.
    (2) During the 116th Congress, the following hearings 
considered issues that would be addressed by H.R. 2547:
          a. 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,'' which 
        considered H.R. 3490, the ``Small Business Lending 
        Fairness Act,'' H.R. 4403, the ``Stop Debt Collection 
        Abuse Act,'' H.R. 3948, the ``Debt Collection Practices 
        Harmonization Act,'' the ``Non-Judicial Foreclosure 
        Debt Collection Clarification Act,'' the ``Fair Debt 
        Collection Practices for Servicemembers Act,'' and the 
        ``Consumer Protections for Medical Debt Collections 
        Act.'' The witnesses at this hearing consisted of: 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..
          b. On September 10, 2019, the Committee on Financial 
        Services held a hearing entitled, ``A $1.5 Trillion 
        Crisis: Protecting Student Borrowers and Holding 
        Student Loan Servicers Accountable,'' which considered 
        the ``Private Loan Disability Discharge Act.'' The 
        witnesses at this hearing consisted of Seth Frotman, 
        Executive Director, Student Borrower Protection Center; 
        Persis Yu, Staff Attorney, National Consumer Law 
        Center; Ashley Harrington, Senior Policy Counsel, 
        Center for Responsible Lending; Hasan Minhaj, Writer, 
        Producer, and Host; and Jason Delisle, Resident Fellow, 
        American Enterprise Institute.
          c. On February 26, 2019, the Committee on Financial 
        Services held a hearing entitled, ``Who's Keeping 
        Score? Holding Credit Bureaus Accountable and Repairing 
        a Broken System,'' which considered the ``Comprehensive 
        Consumer Credit Reporting Reform Act of 2019.'' The 
        witnesses at this hearing consisted of Mark Begor, CEO, 
        Equifax; James M. Peck, President and CEO, TransUnion; 
        Craig Boundy, CEO, Experian North America; Lisa Rice, 
        President and CEO, National Fair Housing Alliance 
        (NFHA); Chi Chi Wu, Staff Attorney, National Consumer 
        Law Center (NCLC); Jennifer Brown, Associate Director, 
        Economic Policy, UnidosUS; Edmund Mierzwinksi, Consumer 
        Program Director, U.S. Public Interest Research Group 
        (PIRG); and Thomas P. Brown, Partner, Paul Hastings.
          d. On July 27, 2020, the Committee on Financial 
        Services held a hearing entitled, ``Protecting 
        Consumers During the Pandemic? An Examination of the 
        Consumer Financial Protection Bureau,'' which discussed 
        the findings from the CFPB's semi-annual report, 
        including debt collection issues.
          e. On February 6, 2020, the Committee on Financial 
        Services held a hearing entitled ``Protecting Consumers 
        or Allowing Consumer Abuse? A Semi-Annual Review of the 
        Consumer Financial Protection Bureau,'' which discussed 
        the findings from the CFPB's semi-annual report, 
        including debt collection issues.
          f. On October 16, 2019, the Committee on Financial 
        Services held a hearing entitled ``Who is Standing Up 
        for Consumers? A Semi-Annual Review of the Consumer 
        Financial Protection Bureau,'' which discussed the 
        findings from the CFPB's semi-annual report, including 
        debt collection issues.
          g. On March 7, 2019, the Committee on Financial 
        Services held a hearing entitled ``Putting Consumers 
        First? A Semi-Annual Review of the Consumer Financial 
        Protection Bureau,'' which discussed the findings from 
        the CFPB's semi-annual report, including debt 
        collection issues.

                        Committee Consideration

    The Committee on Financial Services met in open session on 
April 21, 2021, and ordered H.R. 2547 to be reported favorably 
to the House with an amendment in the nature of a substitute by 
a vote of 30 yeas and 23 nays, 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. 2547.


	[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. 2547 are to ensure 
increased protections for small businesses, servicemembers, 
students, and other consumers against the mistreatment and 
harassment of certain debt collectors.

               New Budget Authority and CBO Cost Estimate

    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, provide that the 
Congressional Budget Office's estimate of H.R. 2547 be 
submitted along with the Committee Report. However, the 
Committee has requested but has not received a timely estimate 
for H.R. 2547 from the Director of the Congressional Budget 
Office. The Committee expects an estimate prior to any 
consideration of H.R. 2547 by the House of Representatives.

                        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. 2547. 
However, clause 3(d)(2)(B) of that rule provides that this 
requirement does not apply when a cost estimate of the bill 
prepared by the Director of the Congressional Budget Office 
under section 402 of the Congressional Budget Act has been 
submitted. The Committee expects the Congressional Budget Act 
to submit such an estimate prior to any consideration of H.R. 
2547 by the House of Representatives, and adopts that estimate. 
Based on informal consultations with the Congressional Budget 
Office, the Committee estimates that certain provisions of the 
bill will have insignificant increases in direct spending.

                       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 
adopts as its own the forthcoming estimate of federal mandates 
regarding H.R. 2547, as amended, 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. 2547, 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. 2547 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. 2547 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. 2547, 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):

                          TRUTH IN LENDING ACT

TITLE I--CONSUMER CREDIT COST DISCLOSURE

           *       *       *       *       *       *       *


CHAPTER 1--GENERAL PROVISIONS

           *       *       *       *       *       *       *


Sec. 103. Definitions and rules of construction

  (a) The definitions and rules of construction set forth in 
this section are applicable for the purposes of this title.
  (b) Bureau.--The term ``Bureau'' means the Bureau of Consumer 
Financial Protection.
  (c) The term ``Bureau'' refers to the Bureau of Governors of 
the Federal Reserve System.
  (d) The term ``organization'' means a corporation, government 
or governmental subdivision or agency, trust, estate, 
partnership, cooperative, or association.
  (e) The term ``person'' means a natural person or an 
organization.
  (f) The term ``credit'' means the right granted by a creditor 
to a debtor to defer payment of debt or to incur debt and defer 
its payment.
  (g) The term ``creditor'' refers only to a person who both 
(1) regularly extends, whether in connection with loans, sales 
of property or services, or otherwise, consumer credit which is 
payable by agreement in more than four installments or for 
which the payment of a finance charge is or may be required, 
and (2) is the person to whom the debt arising from the 
consumer credit transaction is initially payable on the face of 
the evidence of indebtedness or, if there is no such evidence 
of indebtedness, by agreement. Notwithstanding the preceding 
sentence, in the case of an open-end credit plan involving a 
credit card, the card issuer and any person who honors the 
credit card and offers a discount which is a finance charge are 
creditors. For the purpose of the requirements imposed under 
chapter 4 and sections 127(a)(5), 127(a)(6), 127(a)(7), 
127(b)(1), 127(b)(2), 127(b)(3), 127(b)(8), and 127(b)(10) of 
chapter 2 of this title, the term ``creditor'' shall also 
include card issuers whether or not the amount due is payable 
by agreement in more than four installments or the payment of a 
finance charge is or may be required, and the Bureau shall, by 
regulation, apply these requirements to such card issuers, to 
the extent appropriate, even though the requirements are by 
their terms applicable only to creditors offering open-end 
credit plans. Any person who originates 2 or more mortgages 
referred to in subsection (aa) in any 12-month period or any 
person who originates 1 or more such mortgages through a 
mortgage broker shall be considered to be a creditor for 
purposes of this title. The term ``creditor'' includes a 
private educational lender (as that term is defined in section 
140) for purposes of this title.
  (h) The term ``credit sale'' refers to any sale in which the 
seller is a creditor. The term includes any contract in the 
form of a bailment or lease if the bailee or lessee contracts 
to pay as compensation for use a sum substantially equivalent 
to or in excess of the aggregate value of the property and 
services involved and it is agreed that the bailee or lessee 
will become, or for no other or a nominal consideration has the 
option to become, the owner of the property upon full 
compliance with his obligations under the contract.
  (i) The adjective ``consumer'', used with reference to a 
credit transaction, characterizes the transaction as one in 
which the party to whom credit is offered or extended is a 
natural person, and the money, property, or services which are 
the subject of the transaction are primarily for personal, 
family, or household purposes.
  (j) The terms ``open end credit plan'' and ``open end 
consumer credit plan'' mean a plan under which the creditor 
reasonably contemplates repeated transactions, which prescribes 
the terms of such transactions, and which provides for a 
finance charge which may be computed from time to time on the 
outstanding unpaid balance. A credit plan or open end consumer 
credit plan which is an open end credit plan or open end 
consumer credit plan within the meaning of the preceding 
sentence is an open end credit plan or open end consumer credit 
plan even if credit information is verified from time to time.
  (k) The term ``adequate notice'', as used in section 133, 
means a printed notice to a cardholder which sets forth the 
pertinent facts clearly and conspicuously so that a person 
against whom it is to operate could reasonably be expected to 
have noticed it and understood its meaning. Such notice may be 
given to a cardholder by printing the notice on any credit 
card, or on each periodic statement of account, issued to the 
cardholder, or by any other means reasonably assuring the 
receipt thereof by the cardholder.
  (l) The term ``credit card'' means any card, plate, coupon 
book or other credit device existing for the purpose of 
obtaining money, property, labor, or services on credit.
  (m) The term ``accepted credit card'' means any credit card 
which the cardholder has requested and received or has signed 
or has used, or authorized another to use, for the purpose of 
obtaining money, property, labor, or services on credit.
  (n) The term ``cardholder'' means any person to whom a credit 
card is issued or any person who has agreed with the card 
issuer to pay obligations arising from the issuance of a credit 
card to another person.
  (o) The term ``card issuer'' means any person who issues a 
credit card, or the agent of such person with respect to such 
card.
  (p) The term ``unauthorized use'', as used in section 133, 
means a use of a credit card by a person other than the 
cardholder who does not have actual, implied, or apparent 
authority for such use and from which the cardholder receives 
no benefit.
  (q) The term ``discount'' as used in section 167 means a 
reduction made from the regular price. The term ``discount'' as 
used in section 167 shall not mean a surcharge.
  (r) The term ``surcharge'' as used in section 103 and section 
167 means any means of increasing the regular price to a 
cardholder which is not imposed upon customers paying by cash, 
check, or similar means.
  (s) The term ``State'' refers to any State, the Commonwealth 
of Puerto Rico, the District of Columbia, and any territory or 
possession of the United States.
  (t) The term ``agricultural purposes'' includes the 
production, harvest, exhibition, marketing, transportation, 
processing, or manufacture of agricultural products by a 
natural person who cultivates, plants, propagates, or nurtures 
those agricultural products, including but not limited to the 
acquisition of farmland, real property with a farm residence, 
and personal property and services used primarily in farming.
  (u) The term ``agricultural products'' includes agricultural, 
horticultural, viticultural, and dairy products, livestock, 
wildlife, poultry, bees, forest products, fish and shellfish, 
and any products thereof, including processed and manufactured 
products, and any and all products raised or produced on farms 
and any processed or manufactured products thereof.
  (v) The term ``material disclosures'' means the disclosure, 
as required by this title, of the annual percentage rate, the 
method of determining the finance charge and the balance upon 
which a finance charge will be imposed, the amount of the 
finance charge, the amount to be financed, the total of 
payments, the number and amount of payments, the due dates or 
periods of payments scheduled to repay the indebtedness, and 
the disclosures required by section 129(a).
  (w) The term ``dwelling'' means a residential structure or 
mobile home which contains one to four family housing units, or 
individual units of condominiums or cooperatives.
  (x) The term ``residential mortgage transaction'' means a 
transaction in which a mortgage, deed of trust, purchase money 
security interest arising under an installment sales contract, 
or equivalent consensual security interest is created or 
retained against the consumer's dwelling to finance the 
acquisition or initial construction of such dwelling.
  (y) As used in this section and section 167, the term 
``regular price'' means the tag or posted price charged for the 
property or service if a single price is tagged or posted, or 
the price charged for the property or service when payment is 
made by use of an open-end credit plan or a credit card if 
either (1) no price is tagged or posted, or (2) two prices are 
tagged or posted, one of which is charged when payment is made 
by use of an open-end credit plan or a credit card and the 
other when payment is made by use of cash, check, or similar 
means. For purposes of this definition, payment by check, 
draft, or other negotiable instrument which may result in the 
debiting of an open-end credit plan or a credit cardholder's 
open-end account shall not be considered payment made by use of 
the plan or the account.
  (z) Any reference to any requirement imposed under this title 
or any provision thereof includes reference to the regulations 
of the Bureau under this title or the provision thereof in 
question.
  (aa) The disclosure of an amount or percentage which is 
greater than the amount or percentage required to be disclosed 
under this title does not in itself constitute a violation of 
this title.
  (bb) High-cost Mortgage.--
          (1) Definition.--
                  (A) In general.--The term ``high-cost 
                mortgage'', and a mortgage referred to in this 
                subsection, means a consumer credit transaction 
                that is secured by the consumer's principal 
                dwelling, other than a reverse mortgage 
                transaction, if--
                          (i) in the case of a credit 
                        transaction secured--
                                  (I) by a first mortgage on 
                                the consumer's principal 
                                dwelling, the annual percentage 
                                rate at consummation of the 
                                transaction will exceed by more 
                                than 6.5 percentage points (8.5 
                                percentage points, if the 
                                dwelling is personal property 
                                and the transaction is for less 
                                than $50,000) the average prime 
                                offer rate, as defined in 
                                section 129C(b)(2)(B), for a 
                                comparable transaction; or
                                  (II) by a subordinate or 
                                junior mortgage on the 
                                consumer's principal dwelling, 
                                the annual percentage rate at 
                                consummation of the transaction 
                                will exceed by more than 8.5 
                                percentage points the average 
                                prime offer rate, as defined in 
                                section 129C(b)(2)(B), for a 
                                comparable transaction;
                          (ii) the total points and fees 
                        payable in connection with the 
                        transaction, other than bona fide third 
                        party charges not retained by the 
                        mortgage originator, creditor, or an 
                        affiliate of the creditor or mortgage 
                        originator, exceed--
                                  (I) in the case of a 
                                transaction for $20,000 or 
                                more, 5 percent of the total 
                                transaction amount; or
                                  (II) in the case of a 
                                transaction for less than 
                                $20,000, the lesser of 8 
                                percent of the total 
                                transaction amount or $1,000 
                                (or such other dollar amount as 
                                the Bureau shall prescribe by 
                                regulation); or
                          (iii) the credit transaction 
                        documents permit the creditor to charge 
                        or collect prepayment fees or penalties 
                        more than 36 months after the 
                        transaction closing or such fees or 
                        penalties exceed, in the aggregate, 
                        more than 2 percent of the amount 
                        prepaid.
                  (B) Introductory rates taken into account.--
                For purposes of subparagraph (A)(i), the annual 
                percentage rate of interest shall be determined 
                based on the following interest rate:
                          (i) In the case of a fixed-rate 
                        transaction in which the annual 
                        percentage rate will not vary during 
                        the term of the loan, the interest rate 
                        in effect on the date of consummation 
                        of the transaction.
                          (ii) In the case of a transaction in 
                        which the rate of interest varies 
                        solely in accordance with an index, the 
                        interest rate determined by adding the 
                        index rate in effect on the date of 
                        consummation of the transaction to the 
                        maximum margin permitted at any time 
                        during the loan agreement.
                          (iii) In the case of any other 
                        transaction in which the rate may vary 
                        at any time during the term of the loan 
                        for any reason, the interest charged on 
                        the transaction at the maximum rate 
                        that may be charged during the term of 
                        the loan.
                  (C) Mortgage insurance.--For the purposes of 
                computing the total points and fees under 
                paragraph (4), the total points and fees shall 
                exclude--
                          (i) any premium provided by an agency 
                        of the Federal Government or an agency 
                        of a State;
                          (ii) any amount that is not in excess 
                        of the amount payable under policies in 
                        effect at the time of origination under 
                        section 203(c)(2)(A) of the National 
                        Housing Act (12 U.S.C. 1709(c)(2)(A)), 
                        provided that the premium, charge, or 
                        fee is required to be refundable on a 
                        pro-rated basis and the refund is 
                        automatically issued upon notification 
                        of the satisfaction of the underlying 
                        mortgage loan; and
                          (iii) any premium paid by the 
                        consumer after closing.
  (2)(A) After the 2-year period beginning on the effective 
date of the regulations promulgated under section 155 of the 
Riegle Community Development and Regulatory Improvement Act of 
1994, and no more frequently than biennially after the first 
increase or decrease under this subparagraph, the Bureau may by 
regulation increase or decrease the number of percentage points 
specified in paragraph (1)(A), if the Bureau determines that 
the increase or decrease is--
          (i) consistent with the consumer protections against 
        abusive lending provided by the amendments made by 
        subtitle B of title I of the Riegle Community 
        Development and Regulatory Improvement Act of 1994; and
          (ii) warranted by the need for credit.
          (B) An increase or decrease under subparagraph (A)--
                  (i) may not result in the number of 
                percentage points referred to in paragraph 
                (1)(A)(i)(I) being less than 6 percentage 
                points or greater than 10 percentage points; 
                and
                  (ii) may not result in the number of 
                percentage points referred to in paragraph 
                (1)(A)(i)(II) being less than 8 percentage 
                points or greater than 12 percentage points.
  (C) In determining whether to increase or decrease the number 
of percentage points referred to in subparagraph (A), the 
Bureau shall consult with representatives of consumers, 
including low-income consumers, and lenders.
  (3) The amount specified in paragraph (1)(B)(ii) shall be 
adjusted annually on January 1 by the annual percentage change 
in the Consumer Price Index, as reported on June 1 of the year 
preceding such adjustment.
  (4) For purposes of paragraph (1)(B), points and fees shall 
include--
          (A) all items included in the finance charge, except 
        interest or the time-price differential;
          (B) all compensation paid directly or indirectly by a 
        consumer or creditor to a mortgage originator from any 
        source, including a mortgage originator that is also 
        the creditor in a table-funded transaction;
          (C) each of the charges listed in section 106(e) 
        (except an escrow for future payment of taxes), 
        unless--
                  (i) the charge is reasonable;
                  (ii) the creditor receives no direct or 
                indirect compensation; and
                  (iii) the charge is paid to a third party 
                unaffiliated with the creditor; and
          (D) premiums or other charges payable at or before 
        closing for any credit life, credit disability, credit 
        unemployment, or credit property insurance, or any 
        other accident, loss-of-income, life or health 
        insurance, or any payments directly or indirectly for 
        any debt cancellation or suspension agreement or 
        contract, except that insurance premiums or debt 
        cancellation or suspension fees calculated and paid in 
        full on a monthly basis shall not be considered 
        financed by the creditor;
          (E) the maximum prepayment fees and penalties which 
        may be charged or collected under the terms of the 
        credit transaction;
          (F) all prepayment fees or penalties that are 
        incurred by the consumer if the loan refinances a 
        previous loan made or currently held by the same 
        creditor or an affiliate of the creditor; and
          (G) such other charges as the Bureau determines to be 
        appropriate.
          (5) Calculation of points and fees for open-end 
        consumer credit plans.--In the case of open-end 
        consumer credit plans, points and fees shall be 
        calculated, for purposes of this section and section 
        129, by adding the total points and fees known at or 
        before closing, including the maximum prepayment 
        penalties which may be charged or collected under the 
        terms of the credit transaction, plus the minimum 
        additional fees the consumer would be required to pay 
        to draw down an amount equal to the total credit line.
  (6) This subsection shall not be construed to limit the rate 
of interest or the finance charge that a person may charge a 
consumer for any extension of credit.
  (cc) The term ``reverse mortgage transaction'' means a 
nonrecourse transaction in which a mortgage, deed of trust, or 
equivalent consensual security interest is created against the 
consumer's principal dwelling--
          (1) securing one or more advances; and
          (2) with respect to which the payment of any 
        principal, interest, and shared appreciation or equity 
        is due and payable (other than in the case of default) 
        only after--
                  (A) the transfer of the dwelling;
                  (B) the consumer ceases to occupy the 
                dwelling as a principal dwelling; or
                  (C) the death of the consumer.
  (dd) Definitions Relating to Mortgage Origination and 
Residential Mortgage Loans.--
          (1) Commission.--Unless otherwise specified, the term 
        ``Commission'' means the Federal Trade Commission.
          (2) Mortgage originator.--The term ``mortgage 
        originator''--
                  (A) means any person who, for direct or 
                indirect compensation or gain, or in the 
                expectation of direct or indirect compensation 
                or gain--
                          (i) takes a residential mortgage loan 
                        application;
                          (ii) assists a consumer in obtaining 
                        or applying to obtain a residential 
                        mortgage loan; or
                          (iii) offers or negotiates terms of a 
                        residential mortgage loan;
                  (B) includes any person who represents to the 
                public, through advertising or other means of 
                communicating or providing information 
                (including the use of business cards, 
                stationery, brochures, signs, rate lists, or 
                other promotional items), that such person can 
                or will provide any of the services or perform 
                any of the activities described in subparagraph 
                (A);
                  (C) does not include any person who is--
                          (i) not otherwise described in 
                        subparagraph (A) or (B) and who 
                        performs purely administrative or 
                        clerical tasks on behalf of a person 
                        who is described in any such 
                        subparagraph; or
                          (ii) a retailer of manufactured or 
                        modular homes or an employee of the 
                        retailer if the retailer or employee, 
                        as applicable--
                                  (I) does not receive 
                                compensation or gain for 
                                engaging in activities 
                                described in subparagraph (A) 
                                that is in excess of any 
                                compensation or gain received 
                                in a comparable cash 
                                transaction;
                                  (II) discloses to the 
                                consumer--
                                          (aa) in writing any 
                                        corporate affiliation 
                                        with any creditor; and
                                          (bb) if the retailer 
                                        has a corporate 
                                        affiliation with any 
                                        creditor, at least 1 
                                        unaffiliated creditor; 
                                        and
                                  (III) does not directly 
                                negotiate with the consumer or 
                                lender on loan terms (including 
                                rates, fees, and other costs).
                  (D) does not include a person or entity that 
                only performs real estate brokerage activities 
                and is licensed or registered in accordance 
                with applicable State law, unless such person 
                or entity is compensated by a lender, a 
                mortgage broker, or other mortgage originator 
                or by any agent of such lender, mortgage 
                broker, or other mortgage originator;
                  (E) does not include, with respect to a 
                residential mortgage loan, a person, estate, or 
                trust that provides mortgage financing for the 
                sale of 3 properties in any 12-month period to 
                purchasers of such properties, each of which is 
                owned by such person, estate, or trust and 
                serves as security for the loan, provided that 
                such loan--
                          (i) is not made by a person, estate, 
                        or trust that has constructed, or acted 
                        as a contractor for the construction 
                        of, a residence on the property in the 
                        ordinary course of business of such 
                        person, estate, or trust;
                          (ii) is fully amortizing;
                          (iii) is with respect to a sale for 
                        which the seller determines in good 
                        faith and documents that the buyer has 
                        a reasonable ability to repay the loan;
                          (iv) has a fixed rate or an 
                        adjustable rate that is adjustable 
                        after 5 or more years, subject to 
                        reasonable annual and lifetime 
                        limitations on interest rate increases; 
                        and
                          (v) meets any other criteria the 
                        Bureau may prescribe;
                  (F) does not include the creditor (except the 
                creditor in a table-funded transaction) under 
                paragraph (1), (2), or (4) of section 129B(c); 
                and
                  (G) does not include a servicer or servicer 
                employees, agents and contractors, including 
                but not limited to those who offer or negotiate 
                terms of a residential mortgage loan for 
                purposes of renegotiating, modifying, replacing 
                and subordinating principal of existing 
                mortgages where borrowers are behind in their 
                payments, in default or have a reasonable 
                likelihood of being in default or falling 
                behind.
          (3) Nationwide mortgage licensing system and 
        registry.--The term ``Nationwide Mortgage Licensing 
        System and Registry'' has the same meaning as in the 
        Secure and Fair Enforcement for Mortgage Licensing Act 
        of 2008.
          (4) Other definitions relating to mortgage 
        originator.--For purposes of this subsection, a person 
        ``assists a consumer in obtaining or applying to obtain 
        a residential mortgage loan'' by, among other things, 
        advising on residential mortgage loan terms (including 
        rates, fees, and other costs), preparing residential 
        mortgage loan packages, or collecting information on 
        behalf of the consumer with regard to a residential 
        mortgage loan.
          (5) Residential mortgage loan.--The term 
        ``residential mortgage loan'' means any consumer credit 
        transaction that is secured by a mortgage, deed of 
        trust, or other equivalent consensual security interest 
        on a dwelling or on residential real property that 
        includes a dwelling, other than a consumer credit 
        transaction under an open end credit plan or, for 
        purposes of sections 129B and 129C and section 128(a) 
        (16), (17), (18), and (19), and sections 128(f) and 
        130(k), and any regulations promulgated thereunder, an 
        extension of credit relating to a plan described in 
        section 101(53D) of title 11, United States Code.
          (6) Secretary.--The term ``Secretary'', when used in 
        connection with any transaction or person involved with 
        a residential mortgage loan, means the Secretary of 
        Housing and Urban Development.
          (7) Servicer.--The term ``servicer'' has the same 
        meaning as in section 6(i)(2) of the Real Estate 
        Settlement Procedures Act of 1974 (12 U.S.C. 
        2605(i)(2)).
  (ee) Bona Fide Discount Points and Prepayment Penalties.--For 
the purposes of determining the amount of points and fees for 
purposes of subsection (aa), either the amounts described in 
paragraph (1) or (2) of the following paragraphs, but not both, 
shall be excluded:
          (1) Up to and including 2 bona fide discount points 
        payable by the consumer in connection with the 
        mortgage, but only if the interest rate from which the 
        mortgage's interest rate will be discounted does not 
        exceed by more than 1 percentage point--
                  (A) the average prime offer rate, as defined 
                in section 129C; or
                  (B) if secured by a personal property loan, 
                the average rate on a loan in connection with 
                which insurance is provided under title I of 
                the National Housing Act (12 U.S.C. 1702 et 
                seq.).
          (2) Unless 2 bona fide discount points have been 
        excluded under paragraph (1), up to and including 1 
        bona fide discount point payable by the consumer in 
        connection with the mortgage, but only if the interest 
        rate from which the mortgage's interest rate will be 
        discounted does not exceed by more than 2 percentage 
        points--
                  (A) the average prime offer rate, as defined 
                in section 129C; or
                  (B) if secured by a personal property loan, 
                the average rate on a loan in connection with 
                which insurance is provided under title I of 
                the National Housing Act (12 U.S.C. 1702 et 
                seq.).
          (3) For purposes of paragraph (1), the term ``bona 
        fide discount points'' means loan discount points which 
        are knowingly paid by the consumer for the purpose of 
        reducing, and which in fact result in a bona fide 
        reduction of, the interest rate or time-price 
        differential applicable to the mortgage.
          (4) Paragraphs (1) and (2) shall not apply to 
        discount points used to purchase an interest rate 
        reduction unless the amount of the interest rate 
        reduction purchased is reasonably consistent with 
        established industry norms and practices for secondary 
        mortgage market transactions.
  (ff) The term ``debt'' means any obligation of a person to 
pay to another person money--
          (1) regardless of whether such obligation is absolute 
        or contingent;
          (2) that includes the right of the person providing 
        the money to an equitable remedy for breach of 
        performance if the breach gives rise to a right to 
        payment; and
          (3) regardless of whether the obligation or right to 
        an equitable remedy described in paragraph (2) has been 
        reduced to judgment, fixed, contingent, matured, 
        unmatured, disputed, undisputed, recourse, nonrecourse, 
        secured, or unsecured.

           *       *       *       *       *       *       *


                     CHAPTER 2--CREDIT TRANSACTIONS

Sec.
121. General requirement of disclosure.
     * * * * * * *
140B. Unfair credit practices.

           *       *       *       *       *       *       *


Sec. 130. Civil liability

  (a) Except as otherwise provided in this section, any 
creditor who fails to comply with any requirement imposed under 
this chapter, including any requirement under section 125, 
subsection (f) or (g) of section 131, or chapter 4 or 5 of this 
title with respect to any person is liable to such person in an 
amount equal to the sum of--
          (1) any actual damage sustained by such person as a 
        result of the failure;
          (2)(A)(i) in the case of an individual action twice 
        the amount of any finance charge in connection with the 
        transaction, (ii) in the case of an individual action 
        relating to a consumer lease under chapter 5 of this 
        title, 25 per centum of the total amount of monthly 
        payments under the lease, except that the liability 
        under this subparagraph shall not be less than $200 nor 
        greater than $2,000, (iii) in the case of an individual 
        action relating to an open end consumer credit plan 
        that is not secured by real property or a dwelling, 
        twice the amount of any finance charge in connection 
        with the transaction, with a minimum of $500 and a 
        maximum of $5,000, or such higher amount as may be 
        appropriate in the case of an established pattern or 
        practice of such failures; or (iv) in the case of an 
        individual action relating to a credit transaction not 
        under an open end credit plan that is secured by real 
        property or a dwelling, not less than $400 or greater 
        than $4,000; or
          (B) in the case of a class action, such amount as the 
        court may allow, except that as to each member of the 
        class no minimum recovery shall be applicable, and the 
        total recovery under this subparagraph in any class 
        action or series of class actions arising out of the 
        same failure to comply by the same creditor shall not 
        be more than the lesser of $1,000,000 or 1 per centum 
        of the net worth of the creditor;
          (3) in the case of any successful action to enforce 
        the foregoing liability or in any action in which a 
        person is determined to have a right of rescission 
        under section 125 or 128(e)(7), the costs of the 
        action, together with a reasonable attorney's fee as 
        determined by the court; and
          (4) in the case of a failure to comply with any 
        requirement under section 129, paragraph (1) or (2) of 
        section 129B(c), or section 129C(a), an amount equal to 
        the sum of all finance charges and fees paid by the 
        consumer, unless the creditor demonstrates that the 
        failure to comply is not material.
In determining the amount of award in any class action, the 
court shall consider, among other relevant factors, the amount 
of any actual damages awarded, the frequency and persistence of 
failures of compliance by the creditor, the resources of the 
creditor, the number of persons adversely affected, and the 
extent to which the creditor's failure of compliance was 
intentional. In connection with the disclosures referred to in 
subsections (a) and (b) of section 127, a creditor shall have a 
liability determined under paragraph (2) only for failing to 
comply with the requirements of section 125, 127(a), or any of 
paragraphs (4) through (13) of section 127(b), or for failing 
to comply with disclosure requirements under State law for any 
term or item that the Bureau has determined to be substantially 
the same in meaning under section 111(a)(2) as any of the terms 
or items referred to in section 127(a), or any of paragraphs 
(4) through (13) of section 127(b). In connection with the 
disclosures referred to in subsection (c) or (d) of section 
127, a card issuer shall have a liability under this section 
only to a cardholder who pays a fee described in section 
127(c)(1)(A)(ii)(I) or section 127(c)(4)(A)(i) or who uses the 
credit card or charge card. In connection with the disclosures 
referred to in section 128, a creditor shall have a liability 
determined under paragraph (2) only for failing to comply with 
the requirements of section 125, of paragraph (2) (insofar as 
it requires a disclosure of the ``amount financed''), (3), (4), 
(5), (6), or (9) of section 128(a), or section 
128(b)(2)(C)(ii), of subparagraphs (A), (B), (D), (F), or (J) 
of section 128(e)(2) (for purposes of paragraph (2) or (4) of 
section 128(e)), or paragraph (4)(C), (6), (7), or (8) of 
section 128(e), or for failing to comply with disclosure 
requirements under State law for any term which the Bureau has 
determined to be substantially the same in meaning under 
section 111(a)(2) as any of the terms referred to in any of 
those paragraphs of section 128(a) or section 128(b)(2)(C)(ii). 
With respect to any failure to make disclosures required under 
this chapter or chapter 4 or 5 of this title, liability shall 
be imposed only upon the creditor required to make disclosure, 
except as provided in section 131.
  (b) A creditor or assignee has no liability under this 
section or section 108 or section 112 for any failure to comply 
with any requirement imposed under this chapter or chapter 5, 
if within sixty days after discovering an error, whether 
pursuant to a final written examination report or notice issued 
under section 108(e)(1) or through the creditor's or assignee's 
own procedures, and prior to the institution of an action under 
this section or the receipt of written notice of the error from 
the obligor, the creditor or assignee notifies the person 
concerned of the error and makes whatever adjustments in the 
appropriate account are necessary to assure that the person 
will not be required to pay an amount in excess of the charge 
actually disclosed, or the dollar equivalent of the annual 
percentage rate actually disclosed, whichever is lower.
  (c) A creditor or assignee may not be held liable in any 
action brought under this section or section 125 for a 
violation of this title if the creditor or assignee shows by a 
preponderance of evidence that the violation was not 
intentional and resulted from a bona fide error notwithstanding 
the maintenance of procedures reasonably adapted to avoid any 
such error. Examples of a bona fide error include, but are not 
limited to, clerical, calculation, computer malfunction and 
programing, and printing errors, except that an error of legal 
judgment with respect to a person's obligations under this 
title is not a bona fide error.
  (d) When there are multiple obligors in a consumer credit 
transaction or consumer lease, there shall be no more than one 
recovery of damages under subsection (a)(2) for a violation of 
this title.
  (e) Except as provided in the subsequent sentence, any action 
under this section may be brought in any United States district 
court, or in any other court of competent jurisdiction, within 
one year from the date of the occurrence of the violation or, 
in the case of a violation involving a private education loan 
(as that term is defined in section 140(a)), 1 year from the 
date on which the first regular payment of principal is due 
under the loan. Any action under this section with respect to 
any violation of section 129, 129B, or 129C may be brought in 
any United States district court, or in any other court of 
competent jurisdiction, before the end of the 3-year period 
beginning on the date of the occurrence of the violation. This 
subsection does not bar a person from asserting a violation of 
this title in an action to collect the debt which was brought 
more than one year from the date of the occurrence of the 
violation as a matter of defense by recoupment or set-off in 
such action, except as otherwise provided by State law. An 
action to enforce a violation of section 129, 129B, 129C, 129D, 
129E, 129F, 129G, or 129H of this Act may also be brought by 
the appropriate State attorney general in any appropriate 
United States district court, or any other court of competent 
jurisdiction, not later than 3 years after the date on which 
the violation occurs. The State attorney general shall provide 
prior written notice of any such civil action to the Federal 
agency responsible for enforcement under section 108 and shall 
provide the agency with a copy of the complaint. If prior 
notice is not feasible, the State attorney general shall 
provide notice to such agency immediately upon instituting the 
action. The Federal agency may--
          (1) intervene in the action;
          (2) upon intervening--
                  (A) remove the action to the appropriate 
                United States district court, if it was not 
                originally brought there; and
                  (B) be heard on all matters arising in the 
                action; and
          (3) file a petition for appeal.
  (f) No provision of this section, section 108(b), section 
108(c), section 108(e), or section 112 imposing any liability 
shall apply to any act done or omitted in good faith in 
conformity with any rule, regulation, or interpretation thereof 
by the Bureau or in conformity with any interpretation or 
approval by an official or employee of the Federal Reserve 
System duly authorized by the Bureau to issue such 
interpretations or approvals under such procedures as the 
Bureau may prescribe therefor, notwithstanding that after such 
act or omission has occurred, such rule, regulation, 
interpretation, or approval is amended, rescinded, or 
determined by judicial or other authority to be invalid for any 
reason.
  (g) The multiple failure to disclose to any person any 
information required under this chapter or chapter 4 or 5 of 
this title to be disclosed in connection with a single account 
under an open end consumer credit plan, other single consumer 
credit sale, consumer loan, consumer lease, or other extension 
of consumer credit, shall entitle the person to a single 
recovery under this section but continued failure to disclose 
after a recovery has been granted shall give rise to rights to 
additional recoveries. This subsection does not bar any remedy 
permitted by section 125.
  (h) A person may not take any action to offset any amount for 
which a creditor or assignee is potentially liable to such 
person under subsection (a)(2) against any amount owed by such 
person, unless the amount of the creditor's or assignee's 
liability under this title has been determined by judgment of a 
court of competent jurisdiction in an action of which such 
person was a party. This subsection does not bar a consumer 
then in default on the obligation from asserting a violation of 
this title as an original action, or as a defense or 
counterclaim to an action to collect amounts owed by the 
consumer brought by a person liable under this title.
  (i) Class Action Moratorium.--
          (1) In general.--During the period beginning on the 
        date of the enactment of the Truth in Lending Class 
        Action Relief Act of 1995 and ending on October 1, 
        1995, no court may enter any order certifying any class 
        in any action under this title--
                  (A) which is brought in connection with any 
                credit transaction not under an open end credit 
                plan which is secured by a first lien on real 
                property or a dwelling and constitutes a 
                refinancing or consolidation of an existing 
                extension of credit; and
                  (B) which is based on the alleged failure of 
                a creditor--
                          (i) to include a charge actually 
                        incurred (in connection with the 
                        transaction) in the finance charge 
                        disclosed pursuant to section 128;
                          (ii) to properly make any other 
                        disclosure required under section 128 
                        as a result of the failure described in 
                        clause (i); or
                          (iii) to provide proper notice of 
                        rescission rights under section 125(a) 
                        due to the selection by the creditor of 
                        the incorrect form from among the model 
                        forms prescribed by the Bureau or from 
                        among forms based on such model forms.
          (2) Exceptions for certain alleged violations.--
        Paragraph (1) shall not apply with respect to any 
        action--
                  (A) described in clause (i) or (ii) of 
                paragraph (1)(B), if the amount disclosed as 
                the finance charge results in an annual 
                percentage rate that exceeds the tolerance 
                provided in section 107(c); or
                  (B) described in paragraph (1)(B)(iii), if--
                          (i) no notice relating to rescission 
                        rights under section 125(a) was 
                        provided in any form; or
                          (ii) proper notice was not provided 
                        for any reason other than the reason 
                        described in such paragraph.
  (j) Private Educational Lender.--A private educational lender 
(as that term is defined in section 140(a)) has no liability 
under this section for failure to comply with section 
128(e)(3)).
  (k) Defense to Foreclosure.--
          (1) In general.--Notwithstanding any other provision 
        of law, when a creditor, assignee, or other holder of a 
        residential mortgage loan or anyone acting on behalf of 
        such creditor, assignee, or holder, initiates a 
        judicial or nonjudicial foreclosure of the residential 
        mortgage loan, or any other action to collect the debt 
        in connection with such loan, a consumer may assert a 
        violation by a creditor of paragraph (1) or (2) of 
        section 129B(c), or of section 129C(a), as a matter of 
        defense by recoupment or set off without regard for the 
        time limit on a private action for damages under 
        subsection (e).
          (2) Amount of recoupment or setoff.--
                  (A) In general.--The amount of recoupment or 
                set-off under paragraph (1) shall equal the 
                amount to which the consumer would be entitled 
                under subsection (a) for damages for a valid 
                claim brought in an original action against the 
                creditor, plus the costs to the consumer of the 
                action, including a reasonable attorney's fee.
                  (B) Special rule.--Where such judgment is 
                rendered after the expiration of the applicable 
                time limit on a private action for damages 
                under subsection (e), the amount of recoupment 
                or set-off under paragraph (1) derived from 
                damages under subsection (a)(4) shall not 
                exceed the amount to which the consumer would 
                have been entitled under subsection (a)(4) for 
                damages computed up to the day preceding the 
                expiration of the applicable time limit.
  (l) Exemption From Liability and Rescission in Case of 
Borrower Fraud or Deception.--In addition to any other remedy 
available by law or contract, no creditor or assignee shall be 
liable to an obligor under this section, if such obligor, or 
co-obligor has been convicted of obtaining by actual fraud such 
residential mortgage loan.
  (m) Creditor.--In this section, the term ``creditor'' refers 
to any person charged with compliance that is not the obligor.

           *       *       *       *       *       *       *


Sec. 140. Preventing unfair and deceptive private educational lending 
                    practices and eliminating conflicts of interest

  (a) Definitions.--As used in this section--
          (1) the term ``cosigner''--
                  (A) means any individual who is liable for 
                the obligation of another without compensation, 
                regardless of how designated in the contract or 
                instrument with respect to that obligation, 
                other than an obligation under a private 
                education loan extended to consolidate a 
                consumer's pre-existing private education 
                loans;
                  (B) includes any person the signature of 
                which is requested as condition to grant credit 
                or to forbear on collection; and
                  (C) does not include a spouse of an 
                individual described in subparagraph (A), the 
                signature of whom is needed to perfect the 
                security interest in a loan.
          (2) the term ``covered educational institution''--
                  (A) means any educational institution that 
                offers a postsecondary educational degree, 
                certificate, or program of study (including any 
                institution of higher education); and
                  (B) includes an agent, officer, or employee 
                of the educational institution;
          (3) the term ``gift''--
                  (A)(i) means any gratuity, favor, discount, 
                entertainment, hospitality, loan, or other item 
                having more than a de minimis monetary value, 
                including services, transportation, lodging, or 
                meals, whether provided in kind, by purchase of 
                a ticket, payment in advance, or reimbursement 
                after the expense has been incurred; and
                  (ii) includes an item described in clause (i) 
                provided to a family member of an officer, 
                employee, or agent of a covered educational 
                institution, or to any other individual based 
                on that individual's relationship with the 
                officer, employee, or agent, if--
                          (I) the item is provided with the 
                        knowledge and acquiescence of the 
                        officer, employee, or agent; and
                          (II) the officer, employee, or agent 
                        has reason to believe the item was 
                        provided because of the official 
                        position of the officer, employee, or 
                        agent; and
                  (B) does not include--
                          (i) standard informational material 
                        related to a loan, default aversion, 
                        default prevention, or financial 
                        literacy;
                          (ii) food, refreshments, training, or 
                        informational material furnished to an 
                        officer, employee, or agent of a 
                        covered educational institution, as an 
                        integral part of a training session or 
                        through participation in an advisory 
                        council that is designed to improve the 
                        service of the private educational 
                        lender to the covered educational 
                        institution, if such training or 
                        participation contributes to the 
                        professional development of the 
                        officer, employee, or agent of the 
                        covered educational institution;
                          (iii) favorable terms, conditions, 
                        and borrower benefits on a private 
                        education loan provided to a student 
                        employed by the covered educational 
                        institution, if such terms, conditions, 
                        or benefits are not provided because of 
                        the student's employment with the 
                        covered educational institution;
                          (iv) the provision of financial 
                        literacy counseling or services, 
                        including counseling or services 
                        provided in coordination with a covered 
                        educational institution, to the extent 
                        that such counseling or services are 
                        not undertaken to secure--
                                  (I) applications for private 
                                education loans or private 
                                education loan volume;
                                  (II) applications or loan 
                                volume for any loan made, 
                                insured, or guaranteed under 
                                title IV of the Higher 
                                Education Act of 1965 (20 
                                U.S.C. 1070 et seq.); or
                                  (III) the purchase of a 
                                product or service of a 
                                specific private educational 
                                lender;
                          (v) philanthropic contributions to a 
                        covered educational institution from a 
                        private educational lender that are 
                        unrelated to private education loans 
                        and are not made in exchange for any 
                        advantage related to private education 
                        loans; or
                          (vi) State education grants, 
                        scholarships, or financial aid funds 
                        administered by or on behalf of a 
                        State;
          (4) the term ``institution of higher education'' has 
        the same meaning as in section 102 of the Higher 
        Education Act of 1965 (20 U.S.C. 1002);
          (5) the term ``postsecondary educational expenses'' 
        means any of the expenses that are included as part of 
        the cost of attendance of a student, as defined under 
        section 472 of the Higher Education Act of 1965 (20 
        U.S.C. 1087ll);
          (6) the term ``preferred lender arrangement'' has the 
        same meaning as in section 151 of the Higher Education 
        Act of 1965;
          (7) the term ``private educational lender'' means--
                  (A) a financial institution, as defined in 
                section 3 of the Federal Deposit Insurance Act 
                (12 U.S.C. 1813) that solicits, makes, or 
                extends private education loans;
                  (B) a Federal credit union, as defined in 
                section 101 of the Federal Credit Union Act (12 
                U.S.C. 1752) that solicits, makes, or extends 
                private education loans; and
                  (C) any other person engaged in the business 
                of soliciting, making, or extending private 
                education loans;
          (8) the term ``private education loan''--
                  (A) means a loan provided by a private 
                educational lender that--
                          (i) is not made, insured, or 
                        guaranteed under of title IV of the 
                        Higher Education Act of 1965 (20 U.S.C. 
                        1070 et seq.); and
                          (ii) is issued expressly for 
                        postsecondary educational expenses to a 
                        borrower, regardless of whether the 
                        loan is provided through the 
                        educational institution that the 
                        subject student attends or directly to 
                        the borrower from the private 
                        educational lender; and
                  (B) does not include an extension of credit 
                under an open end consumer credit plan, a 
                reverse mortgage transaction, a residential 
                mortgage transaction, or any other loan that is 
                secured by real property or a dwelling; and
          (9) the term ``revenue sharing'' means an arrangement 
        between a covered educational institution and a private 
        educational lender under which--
                  (A) a private educational lender provides or 
                issues private education loans with respect to 
                students attending the covered educational 
                institution;
                  (B) the covered educational institution 
                recommends to students or others the private 
                educational lender or the private education 
                loans of the private educational lender; and
                  (C) the private educational lender pays a fee 
                or provides other material benefits, including 
                profit sharing, to the covered educational 
                institution in connection with the private 
                education loans provided to students attending 
                the covered educational institution or a 
                borrower acting on behalf of a student.
  (b) Prohibition on Certain Gifts and Arrangements.--A private 
educational lender may not, directly or indirectly--
          (1) offer or provide any gift to a covered 
        educational institution in exchange for any advantage 
        or consideration provided to such private educational 
        lender related to its private education loan 
        activities; or
          (2) engage in revenue sharing with a covered 
        educational institution.
  (c) Prohibition on Co-Branding.--A private educational lender 
may not use the name, emblem, mascot, or logo of the covered 
educational institution, or other words, pictures, or symbols 
readily identified with the covered educational institution, in 
the marketing of private education loans in any way that 
implies that the covered educational institution endorses the 
private education loans offered by the private educational 
lender.
  (d) Advisory Board Compensation.--Any person who is employed 
in the financial aid office of a covered educational 
institution, or who otherwise has responsibilities with respect 
to private education loans or other financial aid of the 
institution, and who serves on an advisory board, commission, 
or group established by a private educational lender or group 
of such lenders shall be prohibited from receiving anything of 
value from the private educational lender or group of lenders. 
Nothing in this subsection prohibits the reimbursement of 
reasonable expenses incurred by an employee of a covered 
educational institution as part of their service on an advisory 
board, commission, or group described in this subsection.
  (e) Prohibition on Prepayment or Repayment Fees or Penalty.--
It shall be unlawful for any private educational lender to 
impose a fee or penalty on a borrower for early repayment or 
prepayment of any private education loan.
  (f) Credit Card Protections for College Students.--
          (1) Disclosure required.--An institution of higher 
        education shall publicly disclose any contract or other 
        agreement made with a card issuer or creditor for the 
        purpose of marketing a credit card.
          (2) Inducements prohibited.--No card issuer or 
        creditor may offer to a student at an institution of 
        higher education any tangible item to induce such 
        student to apply for or participate in an open end 
        consumer credit plan offered by such card issuer or 
        creditor, if such offer is made--
                  (A) on the campus of an institution of higher 
                education;
                  (B) near the campus of an institution of 
                higher education, as determined by rule of the 
                Bureau; or
                  (C) at an event sponsored by or related to an 
                institution of higher education.
          (3) Sense of the congress.--It is the sense of the 
        Congress that each institution of higher education 
        should consider adopting the following policies 
        relating to credit cards:
                  (A) That any card issuer that markets a 
                credit card on the campus of such institution 
                notify the institution of the location at which 
                such marketing will take place.
                  (B) That the number of locations on the 
                campus of such institution at which the 
                marketing of credit cards takes place be 
                limited.
                  (C) That credit card and debt education and 
                counseling sessions be offered as a regular 
                part of any orientation program for new 
                students of such institution.
  (g) Additional Protections Relating to Borrower or Cosigner 
of a Private Education Loan.--
          (1) Prohibition on automatic default in case of death 
        or bankruptcy of non-student obligor.--With respect to 
        a private education loan involving a student obligor 
        and 1 or more cosigners, the creditor shall not declare 
        a default or accelerate the debt against the student 
        obligor on the sole basis of a bankruptcy or death of a 
        cosigner.
          (2) Cosigner release [in case of death of 
        borrower].--
                  (A) Release of cosigner.--The holder of a 
                private education loan, when notified of the 
                death or total and permanent disability of a 
                student obligor, shall release within a 
                reasonable timeframe any cosigner from the 
                obligations of the cosigner under the private 
                education loan.
                  (B) Notification of release.--A holder or 
                servicer of a private education loan, as 
                applicable, shall within a reasonable time-
                frame notify any cosigners for the private 
                education loan if a cosigner is released from 
                the obligations of the cosigner for the private 
                education loan under this paragraph.
                  (C) Designation of individual to act on 
                behalf of the borrower.--Any lender that 
                extends a private education loan shall provide 
                the student obligor an option to designate an 
                individual to have the legal authority to act 
                on behalf of the student obligor with respect 
                to the private education loan in the event of 
                the death or total and permanent disability of 
                the student obligor.
          (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, 
        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.

           *       *       *       *       *       *       *


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.

           *       *       *       *       *       *       *

                              ----------                              


                   FAIR DEBT COLLECTION PRACTICES ACT

                 TITLE VIII--DEBT COLLECTION PRACTICES

Sec.
801. Short title.
     * * * * * * *
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 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.
          [(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. 
        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--]
          (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. 

          (B) The term does not include-- 
                  [(A)] (i) any officer or employee of a 
                creditor while, in the name of the creditor, 
                collecting debts for such creditor;
                  [(B)] (ii) 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)] (iii) any officer or employee of the 
                United States or any State (not including an 
                independent contractor) to the extent that 
                collecting or attempting to collect any debt is 
                in the performance of his official duties;
                  [(D)] (iv) any person while serving or 
                attempting to serve legal process on any other 
                person in connection with the judicial 
                enforcement of any debt;
                  [(E)] (v) 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 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.]
                  (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.
          (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.
          (9) The term ``medical debt'' means a debt arising 
        from the receipt of medical services, products, or 
        devices.

           *       *       *       *       *       *       *


Sec. 805. Communication in connection with debt collection

  (a) Communication With the Consumer Generally.--Without the 
prior consent of the consumer given directly to the debt 
collector or the express permission of a court of competent 
jurisdiction, a debt collector may not communicate with a 
consumer in connection with the collection of any debt--
          (1) at any unusual time or place or a time or place 
        known or which should be known to be inconvenient to 
        the consumer. In the absence of knowledge of 
        circumstances to the contrary, a debt collector shall 
        assume that the convenient time for communicating with 
        a consumer is after 8 o'clock antimeridian and before 9 
        o'clock postmeridian, local time at the consumer's 
        location;
          (2) if the debt collector knows the consumer is 
        represented by an attorney with respect to such debt 
        and has knowledge of, or can readily ascertain, such 
        attorney's name and address, unless the attorney fails 
        to respond within a reasonable period of time to a 
        communication from the debt collector or unless the 
        attorney consents to direct communication with the 
        consumer; or
          (3) at the consumer's place of employment if the debt 
        collector knows or has reason to know that the 
        consumer's employer prohibits the consumer from 
        receiving such communication.
  (b) Communication With Third Parties.--Except as provided in 
section 804, without the prior consent of the consumer given 
directly to the debt collector, or the express permission of a 
court of competent jurisdiction, or as reasonably necessary to 
effectuate a post judgment judicial remedy, a debt collector 
may not communicate, in connection with the collection of any 
debt, with any person other than the consumer, his attorney, a 
consumer reporting agency if otherwise permitted by law, the 
creditor, the attorney of the creditor, or the attorney of the 
debt collector.
  (c) Ceasing Communication.--If a consumer notifies a debt 
collector in writing that the consumer refuses to pay a debt or 
that the consumer wishes the debt collector to cease further 
communication with the consumer, the debt collector shall not 
communicate further with the consumer with respect to such 
debt, except--
          (1) to advise the consumer that the debt collector's 
        further efforts are being terminated:
          (2) to notify the consumer that the debt collector or 
        creditor may invoke specified remedies which are 
        ordinarily invoked by such debt collector or creditor; 
        or
          (3) where applicable, to notify the consumer that the 
        debt collector or creditor intends to invoke a 
        specified remedy.
If such notice from the consumer is made by mail, notification 
shall be complete upon receipt.
  (d) For the purpose of this section, the term ``consumer'' 
includes the consumer's spouse, parent (if the consumer is a 
minor), guardian, executor, or administrator.
  (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).

Sec. 806. Harassment or abuse

   A debt collector may not engage in any conduct the natural 
consequence of which is to harass, oppress, or abuse any person 
in connection with the collection of a debt. Without limiting 
the general application of the foregoing, the following conduct 
is a violation of this section:
          (1) The use or threat of use of violence or other 
        criminal means to harm the physical person, reputation, 
        or property of any person.
          (2) The use of obscene or profane language or 
        language the natural consequence of which is to abuse 
        the hearer or reader.
          (3) The publication of a list of consumers who 
        allegedly refuse to pay debts, except to a consumer 
        reporting agency or to persons meeting the requirements 
        of section 603(f) or 604(3) of this Act.
          (4) The advertisement for sale of any debt to coerce 
        payment of the debt.
          (5) Causing a telephone to ring or engaging any 
        person in telephone conversation repeatedly or 
        continuously with intent to annoy, abuse, or harass any 
        person at the called number.
          (6) Except as provided in section 804, the placement 
        of telephone calls without meaningful disclosure of the 
        caller's identity.
          (7) Contacting the consumer electronically (including 
        by email or text message) without consent of the 
        consumer to communicate via that method, after such 
        consent has been withdrawn, or more frequently than the 
        consumer consents to be contacted.

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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 or 
                        State government; 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.
          (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).
          (10) Engaging in activities to collect or attempting 
        to collect a medical debt owed or due or asserted to be 
        owed or due by a consumer, 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. 809. Validation of debts

  (a) [Within five days after the initial communication with a 
consumer in connection with the collection of any debt,] Notice 
of Debt; Contents._Within five days after the initial 
communication with a consumer in connection with the collection 
of any debt,  a debt collector shall[, unless the following 
information is contained in the initial communication or the 
consumer has paid the debt,] send the consumer a written notice 
containing--
          (1) the amount of the debt;
          (2) the name of the creditor to whom the debt is 
        owed;
          (3) a statement that unless the consumer, within 
        thirty days after receipt of the notice, disputes the 
        validity of the debt, or any portion thereof, the debt 
        will be assumed to be valid by the debt collector;
          (4) a statement that if the consumer notifies the 
        debt collector in writing within the thirty-day period 
        that the debt, or any portion thereof, is disputed, the 
        debt collector will obtain verification of the debt or 
        a copy of a judgment against the consumer and a copy of 
        such verification or judgment will be mailed to the 
        consumer by the debt collector; and
          (5) a statement that, upon the consumer's written 
        request within the thirty-day period, the debt 
        collector will provide the consumer with the name and 
        address of the original creditor, if different from the 
        current creditor.
  (b) If the consumer notifies the debt collector in writing 
within the thirty-day period described in subsection (a) that 
the debt, or any portion thereof, is disputed, or that the 
consumer requests the name and address of the original 
creditor, the debt collector shall cease collection of the 
debt, or any disputed portion thereof, until the debt collector 
obtains verification of the debt or a copy of a judgment, or 
the name and address of the original creditor, and a copy of 
such verification or judgment, or name and address of the 
original creditor, is mailed to the consumer by the debt 
collector. Collection activities and communications that do not 
otherwise violate this title may continue during the 30-day 
period referred to in subsection (a) unless the consumer has 
notified the debt collector in writing that the debt, or any 
portion of the debt, is disputed or that the consumer requests 
the name and address of the original creditor. Any collection 
activities and communication during the 30-day period may not 
overshadow or be inconsistent with the disclosure of the 
consumer's right to dispute the debt or request the name and 
address of the original creditor.
  (c) The failure of a consumer to dispute the validity of a 
debt under this section may not be construed by any court as an 
admission of liability by the consumer.
  (d) Legal Pleadings.--A communication in the form of a formal 
pleading in a civil action shall not be treated as an initial 
communication for purposes of subsection (a).
  (e) Notice Provisions.--The sending or delivery of any form 
or notice which does not relate to the collection of a debt and 
is expressly required by the Internal Revenue Code of 1986, 
title V of Gramm-Leach-Bliley Act, or any provision of Federal 
or State law relating to notice of data security breach or 
privacy, or any regulation prescribed under any such provision 
of law, shall not be treated as an initial communication in 
connection with debt collection for purposes of this section.

           *       *       *       *       *       *       *


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.

Sec. 813. Civil liability

  (a) Except as otherwise provided by this section, any debt 
collector who fails to comply with any provision of this title 
with respect to any person is liable to such person in an 
amount equal to the sum of--
          (1) any actual damage sustained by such person as a 
        result of such failure;
          (2)(A) in the case of any action by an individual, 
        such additional damages as the court may allow, but not 
        exceeding $1,000[; or] with respect to any one action 
        taken by a debt collector in violation of this 
        subchapter; or
          (B) in the case of a class action, (i) such amount 
        for each named plaintiff as could be recovered under 
        subparagraph (A), and (ii) such amount as the court may 
        allow for all other class members, without regard to a 
        minimum individual recovery, not to exceed the lesser 
        of $500,000 [or 1 per centum of the net worth of the 
        debt collector; and] or 5 percent of the gross annual 
        revenue of the debt collector; and
          (3) in the case of any successful action to enforce 
        the foregoing liability, the costs of the action, 
        together with a reasonable attorney's fee as determined 
        by the court. On a finding by the court that an action 
        under this section was brought in bad faith and for the 
        purpose of harassment, the court may award to the 
        defendant attorney's fees reasonable in relation to the 
        work expended and costs.
  (b) In determining the amount of liability in any action 
under subsection (a), the court shall consider, among other 
relevant factors--
          (1) in any individual action under subsection 
        (a)(2)(A), the maximum amount of statutory damages at 
        the time of noncompliance, the frequency and 
        persistence of noncompliance by the debt collector, the 
        nature of such noncompliance, and the extent to which 
        such noncompliance was intentional; or
          (2) in any class action under subsection (a)(2)(B), 
        the maximum amount of statutory damages at the time of 
        noncompliance, the frequency and persistence of 
        noncompliance by the debt collector, the nature of such 
        noncompliance, the resources of the debt collector, the 
        number of persons adversely affected, and the extent to 
        which the debt collector's noncompliance was 
        intentional.
  (c) A debt collector may not be held liable in any action 
brought under this title if the debt collector shows by a 
preponderance of evidence that the violation was not 
intentional and resulted from a bona fide error notwithstanding 
the maintenance of procedures reasonably adapted to avoid any 
such error.
  (d) An action to enforce any liability created by this title 
may be brought in any appropriate United States district court 
without regard to the amount in controversy, or in any other 
court of competent jurisdiction, within one year from the date 
on which the violation occurs. In a civil action alleging a 
violation of this title, the court may award appropriate 
relief, including injunctive relief.
  (e) No provision of this section imposing any liability shall 
apply to any act done or omitted in good faith in conformity 
with any advisory opinion of the Bureau, notwithstanding that 
after such act or omission has occurred, such opinion is 
amended, rescinded, or determined by judicial or other 
authority to be invalid for any reason.
  (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).

Sec. 814. Administrative enforcement

  (a) Federal Trade Commission.--The Federal Trade Commission 
shall be authorized to enforce compliance with this title, 
except to the extent that enforcement of the requirements 
imposed under this title is specifically committed to another 
Government agency under any of paragraphs (1) through (5) of 
subsection (b), subject to subtitle B of the Consumer Financial 
Protection Act of 2010. For purpose of the exercise by the 
Federal Trade Commission of its functions and powers under the 
Federal Trade Commission Act (15 U.S.C. 41 et seq.), a 
violation of this title shall be deemed an unfair or deceptive 
act or practice in violation of that Act. All of the functions 
and powers of the Federal Trade Commission under the Federal 
Trade Commission Act are available to the Federal Trade 
Commission to enforce compliance by any person with this title, 
irrespective of whether that person is engaged in commerce or 
meets any other jurisdictional tests under the Federal Trade 
Commission Act, including the power to enforce the provisions 
of this title, in the same manner as if the violation had been 
a violation of a Federal Trade Commission trade regulation 
rule.
  (b) Subject to subtitle B of the Consumer Financial 
Protection Act of 2010, compliance with any requirements 
imposed under this title shall be enforced under--
          (1) section 8 of the Federal Deposit Insurance Act, 
        by the appropriate Federal banking agency, as defined 
        in section 3(q) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1813(q)), with respect to--
                  (A) national banks, Federal savings 
                associations, and Federal branches and Federal 
                agencies of foreign banks;
                  (B) member banks of the Federal Reserve 
                System (other than national banks), branches 
                and agencies of foreign banks (other than 
                Federal branches, Federal agencies, and insured 
                State branches of foreign banks), commercial 
                lending companies owned or controlled by 
                foreign banks, and organizations operating 
                under section 25 or 25A of the Federal Reserve 
                Act; and
                  (C) banks and State savings associations 
                insured by the Federal Deposit Insurance 
                Corporation (other than members of the Federal 
                Reserve System), and insured State branches of 
                foreign banks;
          (2) the Federal Credit Union Act, by the 
        Administrator of the National Credit Union 
        Administration with respect to any Federal credit 
        union;
          (3) the Acts to regulate commerce, by the Secretary 
        of Transportation, with respect to all carriers subject 
        to the jurisdiction of the Surface Transportation 
        Board;
          (4) the Federal Aviation Act of 1958, by the 
        Secretary of Transportation with respect to any air 
        carrier or any foreign air carrier subject to that Act;
          (5) the Packers and Stockyards Act, 1921 (except as 
        provided in section 406 of that Act), by the Secretary 
        of Agriculture with respect to any activities subject 
        to that Act; and
          (6) subtitle E of the Consumer Financial Protection 
        Act of 2010, by the Bureau, with respect to any person 
        subject to this title.
The terms used in paragraph (1) that are not defined in this 
title or otherwise defined in section 3(s) of the Federal 
Deposit Insurance Act (12 U.S.C. 1813(s)) shall have the 
meaning given to them in section 1(b) of the International 
Banking Act of 1978 (12 U.S.C. 3101).
  (c) For the purpose of the exercise by any agency referred to 
in subsection (b) of its powers under any Act referred to in 
that subsection, a violation of any requirement imposed under 
this title shall be deemed to be a violation of a requirement 
imposed under that Act. In addition to its powers under any 
provision of law specifically referred to in subsection (b), 
each of the agencies referred to in that subsection may 
exercise, for the purpose of enforcing compliance with any 
requirement imposed under this title any other authority 
conferred on it by law, except as provided in subsection (d).
  (d) Except as provided in section 1029(a) of the Consumer 
Financial Protection Act of 2010, the Bureau may prescribe 
rules with respect to the collection of debts by debt 
collectors, as defined in this title. 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 phone;
          (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.

Sec. 815. Reports to Congress by the Bureau

  (a) Not later than one year after the effective date of this 
title and at one-year intervals thereafter, the Bureau shall 
make reports to the Congress concerning the administration of 
its functions under this title, including such recommendations 
as the Bureau deems necessary or appropriate. In addition, each 
report of the Bureau shall include its assessment of the extent 
to which compliance with this title is being achieved and a 
summary of the enforcement actions taken by the Bureau under 
section 814 of this title. 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) In the exercise of its functions under this title, the 
Bureau may obtain upon request the views of any other Federal 
agency which exercises enforcement functions under section 814 
of this title.

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                              ----------                              


                       FAIR CREDIT REPORTING ACT

TITLE VI--CONSUMER CREDIT REPORTING

           *       *       *       *       *       *       *


Sec. 603. Definitions and rules of construction

  (a) Definitions and rules of construction set forth in this 
section are applicable for the purposes of this title.
  (b) The term ``person'' means any individual, partnership, 
corporation, trust, estate, cooperative, association, 
government or governmental subdivision or agency, or other 
entity.
  (c) The term ``consumer'' means an individual.
  (d) Consumer Report.--
          (1) In general.--The term ``consumer report'' means 
        any written, oral, or other communication of any 
        information by a consumer reporting agency bearing on a 
        consumer's credit worthiness, credit standing, credit 
        capacity, character, general reputation, personal 
        characteristics, or mode of living which is used or 
        expected to be used or collected in whole or in part 
        for the purpose of serving as a factor in establishing 
        the consumer's eligibility for--
                  (A) credit or insurance to be used primarily 
                for personal, family, or household purposes;
                  (B) employment purposes; or
                  (C) any other purpose authorized under 
                section 604.
          (2) Exclusions.--Except as provided in paragraph (3), 
        the term ``consumer report'' does not include--
                  (A) subject to section 624, any--
                          (i) report containing information 
                        solely as to transactions or 
                        experiences between the consumer and 
                        the person making the report;
                          (ii) communication of that 
                        information among persons related by 
                        common ownership or affiliated by 
                        corporate control; or
                          (iii) communication of other 
                        information among persons related by 
                        common ownership or affiliated by 
                        corporate control, if it is clearly and 
                        conspicuously disclosed to the consumer 
                        that the information may be 
                        communicated among such persons and the 
                        consumer is given the opportunity, 
                        before the time that the information is 
                        initially communicated, to direct that 
                        such information not be communicated 
                        among such persons;
                  (B) any authorization or approval of a 
                specific extension of credit directly or 
                indirectly by the issuer of a credit card or 
                similar device;
                  (C) any report in which a person who has been 
                requested by a third party to make a specific 
                extension of credit directly or indirectly to a 
                consumer conveys his or her decision with 
                respect to such request, if the third party 
                advises the consumer of the name and address of 
                the person to whom the request was made, and 
                such person makes the disclosures to the 
                consumer required under section 615; or
                  (D) a communication described in subsection 
                (o) or (x).
          (3) Restriction on sharing of medical information.--
        Except for information or any communication of 
        information disclosed as provided in section 604(g)(3), 
        the exclusions in paragraph (2) shall not apply with 
        respect to information disclosed to any person related 
        by common ownership or affiliated by corporate control, 
        if the information is--
                  (A) medical information;
                  (B) an individualized list or description 
                based on the payment transactions of the 
                consumer for medical products or services; or
                  (C) an aggregate list of identified consumers 
                based on payment transactions for medical 
                products or services.
  (e) The term ``investigative consumer report'' means a 
consumer report or portion thereof in which information on a 
consumer's character, general reputation, personal 
characteristics, or mode of living is obtained through personal 
interviews with neighbors, friends, or associates of the 
consumer reported on or with others with whom he is acquainted 
or who may have knowledge concerning any such items of 
information. However, such information shall not include 
specific factual information on a consumer's credit record 
obtained directly from a creditor of the consumer or from a 
consumer reporting agency when such information was obtained 
directly from a creditor of the consumer or from the consumer.
  (f) The term ``consumer reporting agency'' means any person 
which, for monetary fees, dues, or on a cooperative nonprofit 
basis, regularly engages in whole or in part in the practice of 
assembling or evaluating consumer credit information or other 
information on consumers for the purpose of furnishing consumer 
reports to third parties, and which uses any means or facility 
of interstate commerce for the purpose of preparing or 
furnishing consumer reports.
  (g) The term ``file'', when used in connection with 
information on any consumer, means all of the information on 
that consumer recorded and retained by a consumer reporting 
agency regardless of how the information is stored.
  (h) The term ``employment purposes'' when used in connection 
with a consumer report means a report used for the purpose of 
evaluating a consumer for employment, promotion, reassignment 
or retention as an employee.
  (i) Medical Information.--The term ``medical information''--
          (1) means information or data, whether oral or 
        recorded, in any form or medium, created by or derived 
        from a health care provider or the consumer, that 
        relates to--
                  (A) the past, present, or future physical, 
                mental, or behavioral health or condition of an 
                individual;
                  (B) the provision of health care to an 
                individual; or
                  (C) the payment for the provision of health 
                care to an individual.
          (2) does not include the age or gender of a consumer, 
        demographic information about the consumer, including a 
        consumer's residence address or e-mail address, or any 
        other information about a consumer that does not relate 
        to the physical, mental, or behavioral health or 
        condition of a consumer, including the existence or 
        value of any insurance policy.
  (j) Definitions Relating to Child Support Obligations.--
          (1) Overdue support.--The term ``overdue support'' 
        has the meaning given to such term in section 466(e) of 
        the Social Security Act.
          (2) State or local child support enforcement 
        agency.--The term ``State or local child support 
        enforcement agency'' means a State or local agency 
        which administers a State or local program for 
        establishing and enforcing child support obligations.
  (k) Adverse Action.--
          (1) Actions included.--The term ``adverse action''--
                  (A) has the same meaning as in section 
                701(d)(6) of the Equal Credit Opportunity Act; 
                and
                  (B) means--
                          (i) a denial or cancellation of, an 
                        increase in any charge for, or a 
                        reduction or other adverse or 
                        unfavorable change in the terms of 
                        coverage or amount of, any insurance, 
                        existing or applied for, in connection 
                        with the underwriting of insurance;
                          (ii) a denial of employment or any 
                        other decision for employment purposes 
                        that adversely affects any current or 
                        prospective employee;
                          (iii) a denial or cancellation of, an 
                        increase in any charge for, or any 
                        other adverse or unfavorable change in 
                        the terms of, any license or benefit 
                        described in section 604(a)(3)(D); and
                          (iv) an action taken or determination 
                        that is--
                                  (I) made in connection with 
                                an application that was made 
                                by, or a transaction that was 
                                initiated by, any consumer, or 
                                in connection with a review of 
                                an account under section 
                                604(a)(3)(F)(ii); and
                                  (II) adverse to the interests 
                                of the consumer.
          (2) Applicable findings, decisions, commentary, and 
        orders.--For purposes of any determination of whether 
        an action is an adverse action under paragraph (1)(A), 
        all appropriate final findings, decisions, commentary, 
        and orders issued under section 701(d)(6) of the Equal 
        Credit Opportunity Act by the Bureau or any court shall 
        apply.
  (l) Firm Offer of Credit or Insurance.--The term ``firm offer 
of credit or insurance'' means any offer of credit or insurance 
to a consumer that will be honored if the consumer is 
determined, based on information in a consumer report on the 
consumer, to meet the specific criteria used to select the 
consumer for the offer, except that the offer may be further 
conditioned on one or more of the following:
          (1) The consumer being determined, based on 
        information in the consumer's application for the 
        credit or insurance, to meet specific criteria bearing 
        on credit worthiness or insurability, as applicable, 
        that are established--
                  (A) before selection of the consumer for the 
                offer; and
                  (B) for the purpose of determining whether to 
                extend credit or insurance pursuant to the 
                offer.
          (2) Verification--
                  (A) that the consumer continues to meet the 
                specific criteria used to select the consumer 
                for the offer, by using information in a 
                consumer report on the consumer, information in 
                the consumer's application for the credit or 
                insurance, or other information bearing on the 
                credit worthiness or insurability of the 
                consumer; or
                  (B) of the information in the consumer's 
                application for the credit or insurance, to 
                determine that the consumer meets the specific 
                criteria bearing on credit worthiness or 
                insurability.
          (3) The consumer furnishing any collateral that is a 
        requirement for the extension of the credit or 
        insurance that was--
                  (A) established before selection of the 
                consumer for the offer of credit or insurance; 
                and
                  (B) disclosed to the consumer in the offer of 
                credit or insurance.
  (m) Credit or Insurance Transaction That Is Not Initiated by 
the Consumer.--The term ``credit or insurance transaction that 
is not initiated by the consumer'' does not include the use of 
a consumer report by a person with which the consumer has an 
account or insurance policy, for purposes of--
          (1) reviewing the account or insurance policy; or
          (2) collecting the account.
  (n) State.--The term ``State'' means any State, the 
Commonwealth of Puerto Rico, the District of Columbia, and any 
territory or possession of the United States.
  (o) Excluded Communications.--A communication is described in 
this subsection if it is a communication--
          (1) that, but for subsection (d)(2)(D), would be an 
        investigative consumer report;
          (2) that is made to a prospective employer for the 
        purpose of--
                  (A) procuring an employee for the employer; 
                or
                  (B) procuring an opportunity for a natural 
                person to work for the employer;
          (3) that is made by a person who regularly performs 
        such procurement;
          (4) that is not used by any person for any purpose 
        other than a purpose described in subparagraph (A) or 
        (B) of paragraph (2); and
          (5) with respect to which--
                  (A) the consumer who is the subject of the 
                communication--
                          (i) consents orally or in writing to 
                        the nature and scope of the 
                        communication, before the collection of 
                        any information for the purpose of 
                        making the communication;
                          (ii) consents orally or in writing to 
                        the making of the communication to a 
                        prospective employer, before the making 
                        of the communication; and
                          (iii) in the case of consent under 
                        clause (i) or (ii) given orally, is 
                        provided written confirmation of that 
                        consent by the person making the 
                        communication, not later than 3 
                        business days after the receipt of the 
                        consent by that person;
                  (B) the person who makes the communication 
                does not, for the purpose of making the 
                communication, make any inquiry that if made by 
                a prospective employer of the consumer who is 
                the subject of the communication would violate 
                any applicable Federal or State equal 
                employment opportunity law or regulation; and
                  (C) the person who makes the communication--
                          (i) discloses in writing to the 
                        consumer who is the subject of the 
                        communication, not later than 5 
                        business days after receiving any 
                        request from the consumer for such 
                        disclosure, the nature and substance of 
                        all information in the consumer's file 
                        at the time of the request, except that 
                        the sources of any information that is 
                        acquired solely for use in making the 
                        communication and is actually used for 
                        no other purpose, need not be disclosed 
                        other than under appropriate discovery 
                        procedures in any court of competent 
                        jurisdiction in which an action is 
                        brought; and
                          (ii) notifies the consumer who is the 
                        subject of the communication, in 
                        writing, of the consumer's right to 
                        request the information described in 
                        clause (i).
  (p) Consumer Reporting Agency That Compiles and Maintains 
Files on Consumers on a Nationwide Basis.--The term ``consumer 
reporting agency that compiles and maintains files on consumers 
on a nationwide basis'' means a consumer reporting agency that 
regularly engages in the practice of assembling or evaluating, 
and maintaining, for the purpose of furnishing consumer reports 
to third parties bearing on a consumer's credit worthiness, 
credit standing, or credit capacity, each of the following 
regarding consumers residing nationwide:
          (1) Public record information.
          (2) Credit account information from persons who 
        furnish that information regularly and in the ordinary 
        course of business.
  (q) Definitions Relating to Fraud Alerts.--
          (1) Active duty military consumer.--The term ``active 
        duty military consumer'' means a consumer in military 
        service who--
                  (A) is on active duty (as defined in section 
                101(d)(1) of title 10, United States Code) or 
                is a reservist performing duty under a call or 
                order to active duty under a provision of law 
                referred to in section 101(a)(13) of title 10, 
                United States Code; and
                  (B) is assigned to service away from the 
                usual duty station of the consumer.
          (2) Fraud alert; active duty alert.--The terms 
        ``fraud alert'' and ``active duty alert'' mean a 
        statement in the file of a consumer that--
                  (A) notifies all prospective users of a 
                consumer report relating to the consumer that 
                the consumer may be a victim of fraud, 
                including identity theft, or is an active duty 
                military consumer, as applicable; and
                  (B) is presented in a manner that facilitates 
                a clear and conspicuous view of the statement 
                described in subparagraph (A) by any person 
                requesting such consumer report.
          (3) Identity theft.--The term ``identity theft'' 
        means a fraud committed using the identifying 
        information of another person, subject to such further 
        definition as the Bureau may prescribe, by regulation.
          (4) Identity theft report.--The term ``identity theft 
        report'' has the meaning given that term by rule of the 
        Bureau, and means, at a minimum, a report--
                  (A) that alleges an identity theft;
                  (B) that is a copy of an official, valid 
                report filed by a consumer with an appropriate 
                Federal, State, or local law enforcement 
                agency, including the United States Postal 
                Inspection Service, or such other government 
                agency deemed appropriate by the Bureau; and
                  (C) the filing of which subjects the person 
                filing the report to criminal penalties 
                relating to the filing of false information if, 
                in fact, the information in the report is 
                false.
          (5) New credit plan.--The term ``new credit plan'' 
        means a new account under an open end credit plan (as 
        defined in section 103(i) of the Truth in Lending Act) 
        or a new credit transaction not under an open end 
        credit plan.
  (r) Credit and Debit Related Terms--
          (1) Card issuer.--The term ``card issuer'' means--
                  (A) a credit card issuer, in the case of a 
                credit card; and
                  (B) a debit card issuer, in the case of a 
                debit card.
          (2) Credit card.--The term ``credit card'' has the 
        same meaning as in section 103 of the Truth in Lending 
        Act.
          (3) Debit card.--The term ``debit card'' means any 
        card issued by a financial institution to a consumer 
        for use in initiating an electronic fund transfer from 
        the account of the consumer at such financial 
        institution, for the purpose of transferring money 
        between accounts or obtaining money, property, labor, 
        or services.
          (4) Account and electronic fund transfer.--The terms 
        ``account'' and ``electronic fund transfer'' have the 
        same meanings as in section 903 of the Electronic Fund 
        Transfer Act.
          (5) Credit and creditor.--The terms ``credit'' and 
        ``creditor'' have the same meanings as in section 702 
        of the Equal Credit Opportunity Act.
  (s) Federal Banking Agency.--The term ``Federal banking 
agency'' has the same meaning as in section 3 of the Federal 
Deposit Insurance Act.
  (t) Financial Institution.--The term ``financial 
institution'' means a State or National bank, a State or 
Federal savings and loan association, a mutual savings bank, a 
State or Federal credit union, or any other person that, 
directly or indirectly, holds a transaction account (as defined 
in section 19(b) of the Federal Reserve Act) belonging to a 
consumer.
  (u) Reseller.--The term ``reseller'' means a consumer 
reporting agency that--
          (1) assembles and merges information contained in the 
        database of another consumer reporting agency or 
        multiple consumer reporting agencies concerning any 
        consumer for purposes of furnishing such information to 
        any third party, to the extent of such activities; and
          (2) does not maintain a database of the assembled or 
        merged information from which new consumer reports are 
        produced.
  (v) Commission.--The term ``Commission'' means the Bureau.
  (w) The term ``Bureau'' means the Bureau of Consumer 
Financial Protection.
  (x) Nationwide Specialty Consumer Reporting Agency.--The term 
``nationwide specialty consumer reporting agency'' means a 
consumer reporting agency that compiles and maintains files on 
consumers on a nationwide basis relating to--
          (1) medical records or payments;
          (2) residential or tenant history;
          (3) check writing history;
          (4) employment history; or
          (5) insurance claims.
  (y) Exclusion of Certain Communications for Employee 
Investigations.--
          (1) Communications described in this subsection.--A 
        communication is described in this subsection if--
                  (A) but for subsection (d)(2)(D), the 
                communication would be a consumer report;
                  (B) the communication is made to an employer 
                in connection with an investigation of--
                          (i) suspected misconduct relating to 
                        employment; or
                          (ii) compliance with Federal, State, 
                        or local laws and regulations, the 
                        rules of a self-regulatory 
                        organization, or any preexisting 
                        written policies of the employer;
                  (C) the communication is not made for the 
                purpose of investigating a consumer's credit 
                worthiness, credit standing, or credit 
                capacity; and
                  (D) the communication is not provided to any 
                person except--
                          (i) to the employer or an agent of 
                        the employer;
                          (ii) to any Federal or State officer, 
                        agency, or department, or any officer, 
                        agency, or department of a unit of 
                        general local government;
                          (iii) to any self-regulatory 
                        organization with regulatory authority 
                        over the activities of the employer or 
                        employee;
                          (iv) as otherwise required by law; or
                          (v) pursuant to section 608.
          (2) Subsequent disclosure.--After taking any adverse 
        action based in whole or in part on a communication 
        described in paragraph (1), the employer shall disclose 
        to the consumer a summary containing the nature and 
        substance of the communication upon which the adverse 
        action is based, except that the sources of information 
        acquired solely for use in preparing what would be but 
        for subsection (d)(2)(D) an investigative consumer 
        report need not be disclosed.
          (3) Self-regulatory organization defined.--For 
        purposes of this subsection, the term ``self-regulatory 
        organization'' includes any self-regulatory 
        organization (as defined in section 3(a)(26) of the 
        Securities Exchange Act of 1934), any entity 
        established under title I of the Sarbanes-Oxley Act of 
        2002, any board of trade designated by the Commodity 
        Futures Trading Commission, and any futures association 
        registered with such Commission.
  (z) Veteran.--The term ``veteran'' has the meaning given the 
term in section 101 of title 38, United States Code.
  (aa) Veteran's Medical Debt.--The term ``veteran's medical 
debt''--
          (1) means a medical collection debt of a veteran owed 
        to a non-Department of Veterans Affairs health care 
        provider that was submitted to the Department for 
        payment for health care authorized by the Department of 
        Veterans Affairs; and
          (2) includes medical collection debt that the 
        Department of Veterans Affairs has wrongfully charged a 
        veteran.
  (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).

           *       *       *       *       *       *       *


Sec. 605. Requirements relating to information contained in consumer 
                    reports

  (a) Information Excluded From Consumer Reports.--Except as 
authorized under subsection (b), no consumer reporting agency 
may make any consumer report containing any of the following 
items of information:
  (1) Cases under title 11 of the United States Code or under 
the Bankruptcy Act that, from the date of entry of the order 
for relief or the date of adjudication, as the case may be, 
antedate the report by more than 10 years.
  (2) Civil suits, civil judgments, and records of arrest that, 
from date of entry, antedate the report by more than seven 
years or until the governing statute of limitations has 
expired, whichever is the longer period.
  (3) Paid tax liens which, from date of payment, antedate the 
report by more than seven years.
  (4) Accounts placed for collection or charged to profit and 
loss which antedate the report by more than seven years.
  (5) Any other adverse item of information, other than records 
of convictions of crimes which antedates the report by more 
than seven years.
          (6) The name, address, and telephone number of any 
        medical information furnisher that has notified the 
        agency of its status, unless--
                  (A) such name, address, and telephone number 
                are restricted or reported using codes that do 
                not identify, or provide information sufficient 
                to infer, the specific provider or the nature 
                of such services, products, or devices to a 
                person other than the consumer; or
                  (B) the report is being provided to an 
                insurance company for a purpose relating to 
                engaging in the business of insurance other 
                than property and casualty insurance.
          (7) With respect to a consumer reporting agency 
        described in section 603(p), any information related to 
        a veteran's medical debt if the date on which the 
        hospital care, medical services, or extended care 
        services was rendered relating to the debt antedates 
        the report by less than 1 year if the consumer 
        reporting agency has actual knowledge that the 
        information is related to a veteran's medical debt and 
        the consumer reporting agency is in compliance with its 
        obligation under section 302(c)(5) of the Economic 
        Growth, Regulatory Relief, and Consumer Protection Act.
          (8) With respect to a consumer reporting agency 
        described in section 603(p), any information related to 
        a fully paid or settled veteran's medical debt that had 
        been characterized as delinquent, charged off, or in 
        collection if the consumer reporting agency has actual 
        knowledge that the information is related to a 
        veteran's medical debt and the consumer reporting 
        agency is in compliance with its obligation under 
        section 302(c)(5) of the Economic Growth, Regulatory 
        Relief, and Consumer Protection Act.
          (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.
  (b) The provisions of paragraphs (1) through (5) of 
subsection (a) are not applicable in the case of any consumer 
credit report to be used in connection with--
          (1) a credit transaction involving, or which may 
        reasonably be expected to involve, a principal amount 
        of $150,000 or more;
          (2) the underwriting of life insurance involving, or 
        which may reasonably be expected to involve, a face 
        amount of $150,000 or more; or
          (3) the employment of any individual at an annual 
        salary which equals, or which may reasonably be 
        expected to equal $75,000, or more.
  (c) Running of Reporting Period.--
          (1) In general.--The 7-year period referred to in 
        paragraphs (4) and (6) of subsection (a) shall begin, 
        with respect to any delinquent account that is placed 
        for collection (internally or by referral to a third 
        party, whichever is earlier), charged to profit and 
        loss, or subjected to any similar action, upon the 
        expiration of the 180-day period beginning on the date 
        of the commencement of the delinquency which 
        immediately preceded the collection activity, charge to 
        profit and loss, or similar action.
          (2) Effective date.--Paragraph (1) shall apply only 
        to items of information added to the file of a consumer 
        on or after the date that is 455 days after the date of 
        enactment of the Consumer Credit Reporting Reform Act 
        of 1996.
  (d) Information Required To Be Disclosed.--
          (1) Title 11 information.--Any consumer reporting 
        agency that furnishes a consumer report that contains 
        information regarding any case involving the consumer 
        that arises under title 11, United States Code, shall 
        include in the report an identification of the chapter 
        of such title 11 under which such case arises if 
        provided by the source of the information. If any case 
        arising or filed under title 11, United States Code, is 
        withdrawn by the consumer before a final judgment, the 
        consumer reporting agency shall include in the report 
        that such case or filing was withdrawn upon receipt of 
        documentation certifying such withdrawal.
          (2) Key factor in credit score information.--Any 
        consumer reporting agency that furnishes a consumer 
        report that contains any credit score or any other risk 
        score or predictor on any consumer shall include in the 
        report a clear and conspicuous statement that a key 
        factor (as defined in section 609(f)(2)(B)) that 
        adversely affected such score or predictor was the 
        number of enquiries, if such a predictor was in fact a 
        key factor that adversely affected such score. This 
        paragraph shall not apply to a check services company, 
        acting as such, which issues authorizations for the 
        purpose of approving or processing negotiable 
        instruments, electronic fund transfers, or similar 
        methods of payments, but only to the extent that such 
        company is engaged in such activities.
  (e) Indication of Closure of Account by Consumer.--If a 
consumer reporting agency is notified pursuant to section 
623(a)(4) that a credit account of a consumer was voluntarily 
closed by the consumer, the agency shall indicate that fact in 
any consumer report that includes information related to the 
account.
  (f) Indication of Dispute by Consumer.--If a consumer 
reporting agency is notified pursuant to section 623(a)(3) that 
information regarding a consumer who was furnished to the 
agency is disputed by the consumer, the agency shall indicate 
that fact in each consumer report that includes the disputed 
information.
  (g) Truncation of Credit Card and Debit Card Numbers.--
          (1) In general.--Except as otherwise provided in this 
        subsection, no person that accepts credit cards or 
        debit cards for the transaction of business shall print 
        more than the last 5 digits of the card number or the 
        expiration date upon any receipt provided to the 
        cardholder at the point of the sale or transaction.
          (2) Limitation.--This subsection shall apply only to 
        receipts that are electronically printed, and shall not 
        apply to transactions in which the sole means of 
        recording a credit card or debit card account number is 
        by handwriting or by an imprint or copy of the card.
          (3) Effective date.--This subsection shall become 
        effective--
                  (A) 3 years after the date of enactment of 
                this subsection, with respect to any cash 
                register or other machine or device that 
                electronically prints receipts for credit card 
                or debit card transactions that is in use 
                before January 1, 2005; and
                  (B) 1 year after the date of enactment of 
                this subsection, with respect to any cash 
                register or other machine or device that 
                electronically prints receipts for credit card 
                or debit card transactions that is first put 
                into use on or after January 1, 2005.
  (h) Notice of Discrepancy in Address.--
          (1) In general.--If a person has requested a consumer 
        report relating to a consumer from a consumer reporting 
        agency described in section 603(p), the request 
        includes an address for the consumer that substantially 
        differs from the addresses in the file of the consumer, 
        and the agency provides a consumer report in response 
        to the request, the consumer reporting agency shall 
        notify the requester of the existence of the 
        discrepancy.
          (2) Regulations.--
                  (A) Regulations required.--The Bureau shall,, 
                in consultation with the Federal banking 
                agencies, the National Credit Union 
                Administration, and the Federal Trade 
                Commission,, prescribe regulations providing 
                guidance regarding reasonable policies and 
                procedures that a user of a consumer report 
                should employ when such user has received a 
                notice of discrepancy under paragraph (1).
                  (B) Policies and procedures to be included.--
                The regulations prescribed under subparagraph 
                (A) shall describe reasonable policies and 
                procedures for use by a user of a consumer 
                report--
                          (i) to form a reasonable belief that 
                        the user knows the identity of the 
                        person to whom the consumer report 
                        pertains; and
                          (ii) if the user establishes a 
                        continuing relationship with the 
                        consumer, and the user regularly and in 
                        the ordinary course of business 
                        furnishes information to the consumer 
                        reporting agency from which the notice 
                        of discrepancy pertaining to the 
                        consumer was obtained, to reconcile the 
                        address of the consumer with the 
                        consumer reporting agency by furnishing 
                        such address to such consumer reporting 
                        agency as part of information regularly 
                        furnished by the user for the period in 
                        which the relationship is established.

           *       *       *       *       *       *       *


SEC. 623. RESPONSIBILITIES OF FURNISHERS OF INFORMATION TO CONSUMER 
                    REPORTING AGENCIES.

  (a) Duty of Furnishers of Information To Provide Accurate 
Information.--
          (1) Prohibition.--
                  (A) Reporting information with actual 
                knowledge of errors.--A person shall not 
                furnish any information relating to a consumer 
                to any consumer reporting agency if the person 
                knows or has reasonable cause to believe that 
                the information is inaccurate.
                  (B) Reporting information after notice and 
                confirmation of errors.--A person shall not 
                furnish information relating to a consumer to 
                any consumer reporting agency if--
                          (i) the person has been notified by 
                        the consumer, at the address specified 
                        by the person for such notices, that 
                        specific information is inaccurate; and
                          (ii) the information is, in fact, 
                        inaccurate.
                  (C) No address requirement.--A person who 
                clearly and conspicuously specifies to the 
                consumer an address for notices referred to in 
                subparagraph (B) shall not be subject to 
                subparagraph (A); however, nothing in 
                subparagraph (B) shall require a person to 
                specify such an address.
                  (D) Definition.--For purposes of subparagraph 
                (A), the term ``reasonable cause to believe 
                that the information is inaccurate'' means 
                having specific knowledge, other than solely 
                allegations by the consumer, that would cause a 
                reasonable person to have substantial doubts 
                about the accuracy of the information.
                  (E) Rehabilitation of private education 
                loans.--
                          (i) In general.--Notwithstanding any 
                        other provision of this section, a 
                        consumer may request a financial 
                        institution to remove from a consumer 
                        report a reported default regarding a 
                        private education loan, and such 
                        information shall not be considered 
                        inaccurate, if--
                                  (I) the financial institution 
                                chooses to offer a loan 
                                rehabilitation program which 
                                includes, without limitation, a 
                                requirement of the consumer to 
                                make consecutive on-time 
                                monthly payments in a number 
                                that demonstrates, in the 
                                assessment of the financial 
                                institution offering the loan 
                                rehabilitation program, a 
                                renewed ability and willingness 
                                to repay the loan; and
                                  (II) the requirements of the 
                                loan rehabilitation program 
                                described in subclause (I) are 
                                successfully met.
                          (ii) Banking agencies.--
                                  (I) In general.--If a 
                                financial institution is 
                                supervised by a Federal banking 
                                agency, the financial 
                                institution shall seek written 
                                approval concerning the terms 
                                and conditions of the loan 
                                rehabilitation program 
                                described in clause (i) from 
                                the appropriate Federal banking 
                                agency.
                                  (II) Feedback.--An 
                                appropriate Federal banking 
                                agency shall provide feedback 
                                to a financial institution 
                                within 120 days of a request 
                                for approval under subclause 
                                (I).
                          (iii) Limitation.--
                                  (I) In general.--A consumer 
                                may obtain the benefits 
                                available under this subsection 
                                with respect to rehabilitating 
                                a loan only 1 time per loan.
                                  (II) Rule of construction.--
                                Nothing in this subparagraph 
                                may be construed to require a 
                                financial institution to offer 
                                a loan rehabilitation program 
                                or to remove any reported 
                                default from a consumer report 
                                as a consideration of a loan 
                                rehabilitation program, except 
                                as described in clause (i).
                          (iv) Definitions.--For purposes of 
                        this subparagraph--
                                  (I) the term ``appropriate 
                                Federal banking agency'' has 
                                the meaning given the term in 
                                section 3 of the Federal 
                                Deposit Insurance Act (12 
                                U.S.C. 1813); and
                                  (II) the term ``private 
                                education loan'' has the 
                                meaning given the term in 
                                section 140(a) of the Truth in 
                                Lending Act (15 U.S.C. 
                                1650(a)).
                  (F) Reporting information during covid-19 
                pandemic.--
                          (i) Definitions.--In this subsection:
                                  (I) Accommodation.--The term 
                                ``accommodation'' includes an 
                                agreement to defer 1 or more 
                                payments, make a partial 
                                payment, forbear any delinquent 
                                amounts, modify a loan or 
                                contract, or any other 
                                assistance or relief granted to 
                                a consumer who is affected by 
                                the coronavirus disease 2019 
                                (COVID-19) pandemic during the 
                                covered period.
                                  (II) Covered period.--The 
                                term ``covered period'' means 
                                the period beginning on January 
                                31, 2020 and ending on the 
                                later of--
                                          (aa) 120 days after 
                                        the date of enactment 
                                        of this subparagraph; 
                                        or
                                          (bb) 120 days after 
                                        the date on which the 
                                        national emergency 
                                        concerning the novel 
                                        coronavirus disease 
                                        (COVID-19) outbreak 
                                        declared by the 
                                        President on March 13, 
                                        2020 under the National 
                                        Emergencies Act (50 
                                        U.S.C. 1601 et seq.) 
                                        terminates.
                          (ii) Reporting.--Except as provided 
                        in clause (iii), if a furnisher makes 
                        an accommodation with respect to 1 or 
                        more payments on a credit obligation or 
                        account of a consumer, and the consumer 
                        makes the payments or is not required 
                        to make 1 or more payments pursuant to 
                        the accommodation, the furnisher 
                        shall--
                                  (I) report the credit 
                                obligation or account as 
                                current; or
                                  (II) if the credit obligation 
                                or account was delinquent 
                                before the accommodation--
                                          (aa) maintain the 
                                        delinquent status 
                                        during the period in 
                                        which the accommodation 
                                        is in effect; and
                                          (bb) if the consumer 
                                        brings the credit 
                                        obligation or account 
                                        current during the 
                                        period described in 
                                        item (aa), report the 
                                        credit obligation or 
                                        account as current.
                          (iii) Exception.--Clause (ii) shall 
                        not apply with respect to a credit 
                        obligation or account of a consumer 
                        that has been charged-off.
          (2) Duty to correct and update information.--A person 
        who--
                  (A) regularly and in the ordinary course of 
                business furnishes information to one or more 
                consumer reporting agencies about the person's 
                transactions or experiences with any consumer; 
                and
                  (B) has furnished to a consumer reporting 
                agency information that the person determines 
                is not complete or accurate,
        shall promptly notify the consumer reporting agency of 
        that determination and provide to the agency any 
        corrections to that information, or any additional 
        information, that is necessary to make the information 
        provided by the person to the agency complete and 
        accurate, and shall not thereafter furnish to the 
        agency any of the information that remains not complete 
        or accurate.
          (3) Duty to provide notice of dispute.--If the 
        completeness or accuracy of any information furnished 
        by any person to any consumer reporting agency is 
        disputed to such person by a consumer, the person may 
        not furnish the information to any consumer reporting 
        agency without notice that such information is disputed 
        by the consumer.
          (4) Duty to provide notice of closed accounts.--A 
        person who regularly and in the ordinary course of 
        business furnishes information to a consumer reporting 
        agency regarding a consumer who has a credit account 
        with that person shall notify the agency of the 
        voluntary closure of the account by the consumer, in 
        information regularly furnished for the period in which 
        the account is closed.
          (5) Duty to provide notice of delinquency of 
        accounts.--(A) In general.--A person who furnishes 
        information to a consumer reporting agency regarding a 
        delinquent account being placed for collection, charged 
        to profit or loss, or subjected to any similar action 
        shall, not later than 90 days after furnishing the 
        information, notify the agency of the date of 
        delinquency on the account, which shall be the month 
        and year of the commencement of the delinquency on the 
        account that immediately preceded the action.
                  (B) Rule of construction.--For purposes of 
                this paragraph only, and provided that the 
                consumer does not dispute the information, a 
                person that furnishes information on a 
                delinquent account that is placed for 
                collection, charged for profit or loss, or 
                subjected to any similar action, complies with 
                this paragraph, if--
                          (i) the person reports the same date 
                        of delinquency as that provided by the 
                        creditor to which the account was owed 
                        at the time at which the commencement 
                        of the delinquency occurred, if the 
                        creditor previously reported that date 
                        of delinquency to a consumer reporting 
                        agency;
                          (ii) the creditor did not previously 
                        report the date of delinquency to a 
                        consumer reporting agency, and the 
                        person establishes and follows 
                        reasonable procedures to obtain the 
                        date of delinquency from the creditor 
                        or another reliable source and reports 
                        that date to a consumer reporting 
                        agency as the date of delinquency; or
                          (iii) the creditor did not previously 
                        report the date of delinquency to a 
                        consumer reporting agency and the date 
                        of delinquency cannot be reasonably 
                        obtained as provided in clause (ii), 
                        the person establishes and follows 
                        reasonable procedures to ensure the 
                        date reported as the date of 
                        delinquency precedes the date on which 
                        the account is placed for collection, 
                        charged to profit or loss, or subjected 
                        to any similar action, and reports such 
                        date to the credit reporting agency.
          (6) Duties of furnishers upon notice of identity 
        theft-related information.--
                  (A) Reasonable procedures.--A person that 
                furnishes information to any consumer reporting 
                agency shall have in place reasonable 
                procedures to respond to any notification that 
                it receives from a consumer reporting agency 
                under section 605B relating to information 
                resulting from identity theft, to prevent that 
                person from refurnishing such blocked 
                information.
                  (B) Information alleged to result from 
                identity theft.--If a consumer submits an 
                identity theft report to a person who furnishes 
                information to a consumer reporting agency at 
                the address specified by that person for 
                receiving such reports stating that information 
                maintained by such person that purports to 
                relate to the consumer resulted from identity 
                theft, the person may not furnish such 
                information that purports to relate to the 
                consumer to any consumer reporting agency, 
                unless the person subsequently knows or is 
                informed by the consumer that the information 
                is correct.
          (7) Negative information.--
                  (A) Notice to consumer required.--
                          (i) In general.--If any financial 
                        institution that extends credit and 
                        regularly and in the ordinary course of 
                        business furnishes information to a 
                        consumer reporting agency described in 
                        section 603(p) furnishes negative 
                        information to such an agency regarding 
                        credit extended to a customer, the 
                        financial institution shall provide a 
                        notice of such furnishing of negative 
                        information, in writing, to the 
                        customer.
                          (ii) Notice effective for subsequent 
                        submissions.--After providing such 
                        notice, the financial institution may 
                        submit additional negative information 
                        to a consumer reporting agency 
                        described in section 603(p) with 
                        respect to the same transaction, 
                        extension of credit, account, or 
                        customer without providing additional 
                        notice to the customer.
                  (B) Time of notice.--
                          (i) In general.--The notice required 
                        under subparagraph (A) shall be 
                        provided to the customer prior to, or 
                        no later than 30 days after, furnishing 
                        the negative information to a consumer 
                        reporting agency described in section 
                        603(p).
                          (ii) Coordination with new account 
                        disclosures.--If the notice is provided 
                        to the customer prior to furnishing the 
                        negative information to a consumer 
                        reporting agency, the notice may not be 
                        included in the initial disclosures 
                        provided under section 127(a) of the 
                        Truth in Lending Act.
                  (C) Coordination with other disclosures.--The 
                notice required under subparagraph (A)--
                          (i) may be included on or with any 
                        notice of default, any billing 
                        statement, or any other materials 
                        provided to the customer; and
                          (ii) must be clear and conspicuous.
                  (D) Model disclosure.--
                          (i) Duty of bureau.--The Bureau shall 
                        prescribe a brief model disclosure that 
                        a financial institution may use to 
                        comply with subparagraph (A), which 
                        shall not exceed 30 words.
                          (ii) Use of model not required.--No 
                        provision of this paragraph may be 
                        construed to require a financial 
                        institution to use any such model form 
                        prescribed by the Bureau.
                          (iii) Compliance using model.--A 
                        financial institution shall be deemed 
                        to be in compliance with subparagraph 
                        (A) if the financial institution uses 
                        any model form prescribed by the Bureau 
                        under this subparagraph, or the 
                        financial institution uses any such 
                        model form and rearranges its format.
                  (E) Use of notice without submitting negative 
                information.--No provision of this paragraph 
                shall be construed as requiring a financial 
                institution that has provided a customer with a 
                notice described in subparagraph (A) to furnish 
                negative information about the customer to a 
                consumer reporting agency.
                  (F) Safe harbor.--A financial institution 
                shall not be liable for failure to perform the 
                duties required by this paragraph if, at the 
                time of the failure, the financial institution 
                maintained reasonable policies and procedures 
                to comply with this paragraph or the financial 
                institution reasonably believed that the 
                institution is prohibited, by law, from 
                contacting the consumer.
                  (G) Definitions.--For purposes of this 
                paragraph, the following definitions shall 
                apply:
                          (i) Negative information.--The term 
                        ``negative information'' means 
                        information concerning a customer's 
                        delinquencies, late payments, 
                        insolvency, or any form of default.
                          (ii) Customer; financial 
                        institution.--The terms ``customer''and 
                        ``financial institution'' have the same 
                        meanings as in section 509 Public Law 
                        106-102.
          (8) Ability of consumer to dispute information 
        directly with furnisher.--
                  (A) In general.--The Bureau shall, in 
                consultation with the Federal Trade Commission, 
                the Federal banking agencies, and the National 
                Credit Union Administration, prescribe 
                regulations that shall identify the 
                circumstances under which a furnisher shall be 
                required to reinvestigate a dispute concerning 
                the accuracy of information contained in a 
                consumer report on the consumer, based on a 
                direct request of a consumer.
                  (B) Considerations.--In prescribing 
                regulations under subparagraph (A), the 
                agencies shall weigh--
                          (i) the benefits to consumers with 
                        the costs on furnishers and the credit 
                        reporting system;
                          (ii) the impact on the overall 
                        accuracy and integrity of consumer 
                        reports of any such requirements;
                          (iii) whether direct contact by the 
                        consumer with the furnisher would 
                        likely result in the most expeditious 
                        resolution of any such dispute; and
                          (iv) the potential impact on the 
                        credit reporting process if credit 
                        repair organizations, as defined in 
                        section 403(3), including entities that 
                        would be a credit repair organization, 
                        but for section 403(3)(B)(i), are able 
                        to circumvent the prohibition in 
                        subparagraph (G).
                  (C) Applicability.--Subparagraphs (D) through 
                (G) shall apply in any circumstance identified 
                under the regulations promulgated under 
                subparagraph (A).
                  (D) Submitting a notice of dispute.--A 
                consumer who seeks to dispute the accuracy of 
                information shall provide a dispute notice 
                directly to such person at the address 
                specified by the person for such notices that--
                          (i) identifies the specific 
                        information that is being disputed;
                          (ii) explains the basis for the 
                        dispute; and
                          (iii) includes all supporting 
                        documentation required by the furnisher 
                        to substantiate the basis of the 
                        dispute.
                  (E) Duty of person after receiving notice of 
                dispute.--After receiving a notice of dispute 
                from a consumer pursuant to subparagraph (D), 
                the person that provided the information in 
                dispute to a consumer reporting agency shall--
                          (i) conduct an investigation with 
                        respect to the disputed information;
                          (ii) review all relevant information 
                        provided by the consumer with the 
                        notice;
                          (iii) complete such person's 
                        investigation of the dispute and report 
                        the results of the investigation to the 
                        consumer before the expiration of the 
                        period under section 611(a)(1) within 
                        which a consumer reporting agency would 
                        be required to complete its action if 
                        the consumer had elected to dispute the 
                        information under that section; and
                          (iv) if the investigation finds that 
                        the information reported was 
                        inaccurate, promptly notify each 
                        consumer reporting agency to which the 
                        person furnished the inaccurate 
                        information of that determination and 
                        provide to the agency any correction to 
                        that information that is necessary to 
                        make the information provided by the 
                        person accurate.
                  (F) Frivolous or irrelevant dispute.--
                          (i) In general.--This paragraph shall 
                        not apply if the person receiving a 
                        notice of a dispute from a consumer 
                        reasonably determines that the dispute 
                        is frivolous or irrelevant, including--
                                  (I) by reason of the failure 
                                of a consumer to provide 
                                sufficient information to 
                                investigate the disputed 
                                information; or
                                  (II) the submission by a 
                                consumer of a dispute that is 
                                substantially the same as a 
                                dispute previously submitted by 
                                or for the consumer, either 
                                directly to the person or 
                                through a consumer reporting 
                                agency under subsection (b), 
                                with respect to which the 
                                person has already performed 
                                the person's duties under this 
                                paragraph or subsection (b), as 
                                applicable.
                          (ii) Notice of determination.--Upon 
                        making any determination under clause 
                        (i) that a dispute is frivolous or 
                        irrelevant, the person shall notify the 
                        consumer of such determination not 
                        later than 5 business days after making 
                        such determination, by mail or, if 
                        authorized by the consumer for that 
                        purpose, by any other means available 
                        to the person.
                          (iii) Contents of notice.--A notice 
                        under clause (ii) shall include--
                                  (I) the reasons for the 
                                determination under clause (i); 
                                and
                                  (II) identification of any 
                                information required to 
                                investigate the disputed 
                                information, which may consist 
                                of a standardized form 
                                describing the general nature 
                                of such information.
                  (G) Exclusion of credit repair 
                organizations.--This paragraph shall not apply 
                if the notice of the dispute is submitted by, 
                is prepared on behalf of the consumer by, or is 
                submitted on a form supplied to the consumer 
                by, a credit repair organization, as defined in 
                section 403(3), or an entity that would be a 
                credit repair organization, but for section 
                403(3)(B)(i).
          (9) Duty to provide notice of status as medical 
        information furnisher.--A person whose primary business 
        is providing medical services, products, or devices, or 
        the person's agent or assignee, who furnishes 
        information to a consumer reporting agency on a 
        consumer shall be considered a medical information 
        furnisher for purposes of this title, and shall notify 
        the agency of such status.
  (b) Duties of Furnishers of Information Upon Notice of 
Dispute.--
          (1) In general.--After receiving notice pursuant to 
        section 611(a)(2) of a dispute with regard to the 
        completeness or accuracy of any information provided by 
        a person to a consumer reporting agency, the person 
        shall--
                  (A) conduct an investigation with respect to 
                the disputed information;
                  (B) review all relevant information provided 
                by the consumer reporting agency pursuant to 
                section 611(a)(2);
                  (C) report the results of the investigation 
                to the consumer reporting agency;
                  (D) if the investigation finds that the 
                information is incomplete or inaccurate, report 
                those results to all other consumer reporting 
                agencies to which the person furnished the 
                information and that compile and maintain files 
                on consumers on a nationwide basis; and
                  (E) if an item of information disputed by a 
                consumer is found to be inaccurate or 
                incomplete or cannot be verified after any 
                reinvestigation under paragraph (1), for 
                purposes of reporting to a consumer reporting 
                agency only, as appropriate, based on the 
                results of the reinvestigation promptly--
                          (i) modify that item of information;
                          (ii) delete that item of information; 
                        or
                          (iii) permanently block the reporting 
                        of that item of information.
          (2) Deadline.--A person shall complete all 
        investigations, reviews, and reports required under 
        paragraph (1) regarding information provided by the 
        person to a consumer reporting agency, before the 
        expiration of the period under section 611(a)(1) within 
        which the consumer reporting agency is required to 
        complete actions required by that section regarding 
        that information.
  (c) Limitation on Liability.--Except as provided in section 
621(c)(1)(B), sections 616 and 617 do not apply to any 
violation of--
          (1) subsection (a) of this section, including any 
        regulations issued thereunder;
          (2) subsection (e) of this section, except that 
        nothing in this paragraph shall limit, expand, or 
        otherwise affect liability under section 616 or 617, as 
        applicable, for violations of subsection (b) of this 
        section; or
          (3) subsection (e) of section 615.
  (d) Limitation on Enforcement.--The provisions of law 
described in paragraphs (1) through (3) of subsection (c) 
(other than with respect to the exception described in 
paragraph (2) of subsection (c)) shall be enforced exclusively 
as provided under section 621 by the Federal agencies and 
officials and the State officials identified in section 621.
  (e) Accuracy Guidelines and Regulations Required.--
          (1) Guidelines.--The Bureau shall, with respect to 
        persons or entities that are subject to the enforcement 
        authority of the Bureau under section 621--
                  (A) establish and maintain guidelines for use 
                by each person that furnishes information to a 
                consumer reporting agency regarding the 
                accuracy and integrity of the information 
                relating to consumers that such entities 
                furnish to consumer reporting agencies, and 
                update such guidelines as often as necessary; 
                and
                  (B) prescribe regulations requiring each 
                person that furnishes information to a consumer 
                reporting agency to establish reasonable 
                policies and procedures for implementing the 
                guidelines established pursuant to subparagraph 
                (A).
          (2) Criteria.--In developing the guidelines required 
        by paragraph (1)(A), the Bureau shall--
                  (A) identify patterns, practices, and 
                specific forms of activity that can compromise 
                the accuracy and integrity of information 
                furnished to consumer reporting agencies;
                  (B) review the methods (including 
                technological means) used to furnish 
                information relating to consumers to consumer 
                reporting agencies;
                  (C) determine whether persons that furnish 
                information to consumer reporting agencies 
                maintain and enforce policies to ensure the 
                accuracy and integrity of information furnished 
                to consumer reporting agencies; and
                  (D) examine the policies and processes that 
                persons that furnish information to consumer 
                reporting agencies employ to conduct 
                reinvestigations and correct inaccurate 
                information relating to consumers that has been 
                furnished to consumer reporting agencies.
  (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.
  (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.

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               CONSUMER FINANCIAL PROTECTION ACT OF 2010

            TITLE X--BUREAU OF CONSUMER FINANCIAL PROTECTION

SEC. 1001. SHORT TITLE.

  This title may be cited as the ``Consumer Financial 
Protection Act of 2010''.

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Subtitle A--Bureau of Consumer Financial Protection

           *       *       *       *       *       *       *


SEC. 1016. APPEARANCES BEFORE AND REPORTS TO CONGRESS.

  (a) Appearances Before Congress.--The Director of the Bureau 
shall appear before the Committee on Banking, Housing, and 
Urban Affairs of the Senate and the Committee on Financial 
Services and the Committee on Energy and Commerce of the House 
of Representatives at semi-annual hearings regarding the 
reports required under subsection (b).
  (b) Reports Required.--The Bureau shall, concurrent with each 
semi-annual hearing referred to in subsection (a), prepare and 
submit to the President and to the Committee on Banking, 
Housing, and Urban Affairs of the Senate and the Committee on 
Financial Services and the Committee on Energy and Commerce of 
the House of Representatives, a report, beginning with the 
session following the designated transfer date. The Bureau may 
also submit such report to the Committee on Commerce, Science, 
and Transportation of the Senate.
  (c) Contents.--The reports required by subsection (b) shall 
include--
          (1) a discussion of the significant problems faced by 
        consumers in shopping for or obtaining consumer 
        financial products or services;
          (2) a justification of the budget request of the 
        previous year;
          (3) a list of the significant rules and orders 
        adopted by the Bureau, as well as other significant 
        initiatives conducted by the Bureau, during the 
        preceding year and the plan of the Bureau for rules, 
        orders, or other initiatives to be undertaken during 
        the upcoming period;
          (4) an analysis of complaints about consumer 
        financial products or services that the Bureau has 
        received and collected in its central database on 
        complaints during the preceding year;
          (5) a list, with a brief statement of the issues, of 
        the public supervisory and enforcement actions to which 
        the Bureau was a party during the preceding year;
          (6) the actions taken regarding rules, orders, and 
        supervisory actions with respect to covered persons 
        which are not credit unions or depository institutions;
          (7) an assessment of significant actions by State 
        attorneys general or State regulators relating to 
        Federal consumer financial law;
          (8) an analysis of the efforts of the Bureau to 
        fulfill the fair lending mission of the Bureau; [and]
          (9) an analysis of the efforts of the Bureau to 
        increase workforce and contracting diversity consistent 
        with the procedures established by the Office of 
        Minority and Women Inclusion[.];
          (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; and
          (11) a list of enforcement actions taken against debt 
        collectors during the preceding year.

           *       *       *       *       *       *       *


Subtitle B--General Powers of the Bureau

           *       *       *       *       *       *       *


SEC. 1022. RULEMAKING AUTHORITY.

  (a) In General.--The Bureau is authorized to exercise its 
authorities under Federal consumer financial law to administer, 
enforce, and otherwise implement the provisions of Federal 
consumer financial law.
  (b) Rulemaking, Orders, and Guidance.--
          (1) General authority.--The Director may prescribe 
        rules and issue orders and guidance, as may be 
        necessary or appropriate to enable the Bureau to 
        administer and carry out the purposes and objectives of 
        the Federal consumer financial laws, and to prevent 
        evasions thereof.
          (2) Standards for rulemaking.--In prescribing a rule 
        under the Federal consumer financial laws--
                  (A) the Bureau shall consider--
                          (i) the potential benefits and costs 
                        to consumers and covered persons, 
                        including the potential reduction of 
                        access by consumers to consumer 
                        financial products or services 
                        resulting from such rule; and
                          (ii) the impact of proposed rules on 
                        covered persons, as described in 
                        section 1026, and the impact on 
                        consumers in rural areas;
                  (B) the Bureau shall consult with the 
                appropriate prudential regulators or other 
                Federal agencies prior to proposing a rule and 
                during the comment process regarding 
                consistency with prudential, market, or 
                systemic objectives administered by such 
                agencies; and
                  (C) if, during the consultation process 
                described in subparagraph (B), a prudential 
                regulator provides the Bureau with a written 
                objection to the proposed rule of the Bureau or 
                a portion thereof, the Bureau shall include in 
                the adopting release a description of the 
                objection and the basis for the Bureau 
                decision, if any, regarding such objection, 
                except that nothing in this clause shall be 
                construed as altering or limiting the 
                procedures under section 1023 that may apply to 
                any rule prescribed by the Bureau.
          (3) Exemptions.--
                  (A) In general.--The Bureau, by rule, may 
                conditionally or unconditionally exempt any 
                class of covered persons, service providers, or 
                consumer financial products or services, from 
                any provision of this title, or from any rule 
                issued under this title, as the Bureau 
                determines necessary or appropriate to carry 
                out the purposes and objectives of this title, 
                taking into consideration the factors in 
                subparagraph (B).
                  (B) Factors.--In issuing an exemption, as 
                permitted under subparagraph (A), the Bureau 
                shall, as appropriate, take into 
                consideration--
                          (i) the total assets of the class of 
                        covered persons;
                          (ii) the volume of transactions 
                        involving consumer financial products 
                        or services in which the class of 
                        covered persons engages; and
                          (iii) existing provisions of law 
                        which are applicable to the consumer 
                        financial product or service and the 
                        extent to which such provisions provide 
                        consumers with adequate protections.
          (4) Exclusive rulemaking authority.--
                  (A) In general.--Notwithstanding any other 
                provisions of Federal law and except as 
                provided in section 1061(b)(5), to the extent 
                that a provision of Federal consumer financial 
                law authorizes the Bureau and another Federal 
                agency to issue regulations under that 
                provision of law for purposes of assuring 
                compliance with Federal consumer financial law 
                and any regulations thereunder, the Bureau 
                shall have the exclusive authority to prescribe 
                rules subject to those provisions of law.
                  (B) Deference.--Notwithstanding any power 
                granted to any Federal agency or to the Council 
                under this title, and subject to section 
                1061(b)(5)(E), the deference that a court 
                affords to the Bureau with respect to a 
                determination by the Bureau regarding the 
                meaning or interpretation of any provision of a 
                Federal consumer financial law shall be applied 
                as if the Bureau were the only agency 
                authorized to apply, enforce, interpret, or 
                administer the provisions of such Federal 
                consumer financial law.
  (c) Monitoring.--
          (1) In general.--In order to support its rulemaking 
        and other functions, the Bureau shall monitor for risks 
        to consumers in the offering or provision of consumer 
        financial products or services, including developments 
        in markets for such products or services.
          (2) Considerations.--In allocating its resources to 
        perform the monitoring required by this section, the 
        Bureau may consider, among other factors--
                  (A) likely risks and costs to consumers 
                associated with buying or using a type of 
                consumer financial product or service;
                  (B) understanding by consumers of the risks 
                of a type of consumer financial product or 
                service;
                  (C) the legal protections applicable to the 
                offering or provision of a consumer financial 
                product or service, including the extent to 
                which the law is likely to adequately protect 
                consumers;
                  (D) rates of growth in the offering or 
                provision of a consumer financial product or 
                service;
                  (E) the extent, if any, to which the risks of 
                a consumer financial product or service may 
                disproportionately affect traditionally 
                underserved consumers; or
                  (F) the types, number, and other pertinent 
                characteristics of covered persons that offer 
                or provide the consumer financial product or 
                service.
          (3) Significant findings.--
                  (A) In general.--The Bureau shall publish not 
                fewer than 1 report of significant findings of 
                its monitoring required by this subsection in 
                each calendar year, beginning with the first 
                calendar year that begins at least 1 year after 
                the designated transfer date.
                  (B) Confidential information.--The Bureau may 
                make public such information obtained by the 
                Bureau under this section as is in the public 
                interest, through aggregated reports or other 
                appropriate formats designed to protect 
                confidential information in accordance with 
                paragraphs (4), (6), (8), and (9).
          (4) Collection of information.--
                  (A) In general.--In conducting any monitoring 
                or assessment required by this section, the 
                Bureau shall have the authority to gather 
                information from time to time regarding the 
                organization, business conduct, markets, and 
                activities of covered persons and service 
                providers.
                  (B) Methodology.--In order to gather 
                information described in subparagraph (A), the 
                Bureau may--
                          (i) gather and compile information 
                        from a variety of sources, including 
                        examination reports concerning covered 
                        persons or service providers, consumer 
                        complaints, voluntary surveys and 
                        voluntary interviews of consumers, 
                        surveys and interviews with covered 
                        persons and service providers, and 
                        review of available databases; and
                          (ii) require covered persons and 
                        service providers participating in 
                        consumer financial services markets to 
                        file with the Bureau, under oath or 
                        otherwise, in such form and within such 
                        reasonable period of time as the Bureau 
                        may prescribe by rule or order, annual 
                        or special reports, or answers in 
                        writing to specific questions, 
                        furnishing information described in 
                        paragraph (4), as necessary for the 
                        Bureau to fulfill the monitoring, 
                        assessment, and reporting 
                        responsibilities imposed by Congress.
                  (C) Limitation.--The Bureau may not use its 
                authorities under this paragraph to obtain 
                records from covered persons and service 
                providers participating in consumer financial 
                services markets for purposes of gathering or 
                analyzing the personally identifiable financial 
                information of consumers.
          (5) Limited information gathering.--In order to 
        assess whether a nondepository is a covered person, as 
        defined in section 1002, the Bureau may require such 
        nondepository to file with the Bureau, under oath or 
        otherwise, in such form and within such reasonable 
        period of time as the Bureau may prescribe by rule or 
        order, annual or special reports, or answers in writing 
        to specific questions.
          (6) Confidentiality rules.--
                  (A) Rulemaking.--The Bureau shall prescribe 
                rules regarding the confidential treatment of 
                information obtained from persons in connection 
                with the exercise of its authorities under 
                Federal consumer financial law.
                  (B) Access by the bureau to reports of other 
                regulators.--
                          (i) Examination and financial 
                        condition reports.--Upon providing 
                        reasonable assurances of 
                        confidentiality, the Bureau shall have 
                        access to any report of examination or 
                        financial condition made by a 
                        prudential regulator or other Federal 
                        agency having jurisdiction over a 
                        covered person or service provider, and 
                        to all revisions made to any such 
                        report.
                          (ii) Provision of other reports to 
                        the bureau.--In addition to the reports 
                        described in clause (i), a prudential 
                        regulator or other Federal agency 
                        having jurisdiction over a covered 
                        person or service provider may, in its 
                        discretion, furnish to the Bureau any 
                        other report or other confidential 
                        supervisory information concerning any 
                        insured depository institution, credit 
                        union, or other entity examined by such 
                        agency under authority of any provision 
                        of Federal law.
                  (C) Access by other regulators to reports of 
                the bureau.--
                          (i) Examination reports.--Upon 
                        providing reasonable assurances of 
                        confidentiality, a prudential 
                        regulator, a State regulator, or any 
                        other Federal agency having 
                        jurisdiction over a covered person or 
                        service provider shall have access to 
                        any report of examination made by the 
                        Bureau with respect to such person, and 
                        to all revisions made to any such 
                        report.
                          (ii) Provision of other reports to 
                        other regulators.--In addition to the 
                        reports described in clause (i), the 
                        Bureau may, in its discretion, furnish 
                        to a prudential regulator or other 
                        agency having jurisdiction over a 
                        covered person or service provider any 
                        other report or other confidential 
                        supervisory information concerning such 
                        person examined by the Bureau under the 
                        authority of any other provision of 
                        Federal law.
          (7) Registration.--
                  (A) In general.--The Bureau may prescribe 
                rules regarding registration requirements 
                applicable to a covered person, other than an 
                insured depository institution, insured credit 
                union, or related person.
                  (B) Registration information.--Subject to 
                rules prescribed by the Bureau, the Bureau may 
                publicly disclose registration information to 
                facilitate the ability of consumers to identify 
                covered persons that are registered with the 
                Bureau.
                  (C) Consultation with state agencies.--In 
                developing and implementing registration 
                requirements under this paragraph, the Bureau 
                shall consult with State agencies regarding 
                requirements or systems (including coordinated 
                or combined systems for registration), where 
                appropriate.
          (8) Privacy considerations.--In collecting 
        information from any person, publicly releasing 
        information held by the Bureau, or requiring covered 
        persons to publicly report information, the Bureau 
        shall take steps to ensure that proprietary, personal, 
        or confidential consumer information that is protected 
        from public disclosure under section 552(b) or 552a of 
        title 5, United States Code, or any other provision of 
        law, is not made public under this title.
          (9) Consumer privacy.--
                  (A) In general.--The Bureau may not obtain 
                from a covered person or service provider any 
                personally identifiable financial information 
                about a consumer from the financial records of 
                the covered person or service provider, 
                except--
                          (i) if the financial records are 
                        reasonably described in a request by 
                        the Bureau and the consumer provides 
                        written permission for the disclosure 
                        of such information by the covered 
                        person or service provider to the 
                        Bureau; or
                          (ii) as may be specifically permitted 
                        or required under other applicable 
                        provisions of law and in accordance 
                        with the Right to Financial Privacy Act 
                        of 1978 (12 U.S.C. 3401 et seq.).
                  (B) Treatment of covered person or service 
                provider.--With respect to the application of 
                any provision of the Right to Financial Privacy 
                Act of 1978, to a disclosure by a covered 
                person or service provider subject to this 
                subsection, the covered person or service 
                provider shall be treated as if it were a 
                ``financial institution'', as defined in 
                section 1101 of that Act (12 U.S.C. 3401).
  (d) Assessment of Significant Rules.--
          (1) In general.--The Bureau shall conduct an 
        assessment of each significant rule or order adopted by 
        the Bureau under Federal consumer financial law. The 
        assessment shall address, among other relevant factors, 
        the effectiveness of the rule or order in meeting the 
        purposes and objectives of this title and the specific 
        goals stated by the Bureau. The assessment shall 
        reflect available evidence and any data that the Bureau 
        reasonably may collect.
          (2) Reports.--The Bureau shall publish a report of 
        its assessment under this subsection not later than 5 
        years after the effective date of the subject rule or 
        order.
          (3) Public comment required.--Before publishing a 
        report of its assessment, the Bureau shall invite 
        public comment on recommendations for modifying, 
        expanding, or eliminating the newly adopted significant 
        rule or order.
  (e) Limitation on Debt Collection Rules.--The Director may 
not issue any rule with respect to debt collection that allows 
a debt collector to send unlimited email and text messages to a 
consumer.

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                              ----------                              


                      TITLE 31, UNITED STATES CODE



           *       *       *       *       *       *       *
SUBTITLE I--GENERAL

           *       *       *       *       *       *       *


                 CHAPTER 3--DEPARTMENT OF THE TREASURY

                       SUBCHAPTER I--ORGANIZATION

Sec.
301. Department of the Treasury.
     * * * * * * *

                      SUBCHAPTER II--ADMINISTRATIVE

     * * * * * * *
334. Prohibition on the referral of emergency individual assistance 
          debt.

           *       *       *       *       *       *       *


SUBCHAPTER II--ADMINISTRATIVE

           *       *       *       *       *       *       *


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.

           *       *       *       *       *       *       *


                             MINORITY VIEWS

    Consumers should not be subject to harmful debt collection 
practices. The Fair Debt Collection Practices Act (FDCPA) 
ensures that consumers are protected from illegal practices 
while at the same time ensures businesses are paid for services 
rendered.
    H.R. 2547 is a progressive retread of several bills from 
the 116th Congress. If enacted, this bill will fundamentally 
restructure the consumer credit market as well as how 
businesses, most of whom are small businesses, are paid for 
their services. As a result, credit will be more expensive for 
all borrowers and may exclude the lowest income borrowers 
entirely.
    The bill prohibits the use of confession of judgment 
provisions in all loan contracts, including all extensions of 
credit, regardless of the nature of the loan or borrower. 
Confessions of judgment are a tool for businesses to collect 
from delinquent borrowers.

     Recouping a loss is necessary for a credit-based 
economy to function properly.
     H.R. 2547 is another attempt by House Democrats to 
expand the CFPB's authority to include commercial businesses.

    The bill discharges private student loan debt if the 
borrower dies or becomes permanently disabled.

     Private student lenders and borrowers already have 
an effective process in place to discharge debt in the event of 
borrower death or permanent disability.
     H.R. 2547 intervenes in private contracts 
negotiated by lender and borrower.

    The bill prohibits medical debt from being included on a 
consumer credit report and prevents businesses from collecting 
on medical debt for two years.

     Removing predictive information from a credit 
report has the potential to increase the cost of credit, 
particularly for borrowers with limited credit histories.
     Additionally, preventing businesses from recouping 
payment for services provided makes healthcare more expensive, 
weakens our credit markets, and raises safety and soundness 
concerns for financial institutions and the financial system 
more broadly.

    The bill prevents businesses from contacting consumers by 
email or text message to collect payment without explicit prior 
consent from the consumer and prevents the Consumer Financial 
Protection Bureau (CFPB) from issuing any final rule that 
allows debt collectors to send unlimited emails and text 
messages to consumers.

     H.R. 2547 undermines the CFPB's October 2020 Final 
Rule intended to modernize debt collection practices. The final 
rule was 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 and 
outlines acceptable communications.
     H.R. 2547 ignores the fact that consumers have the 
ability to opt-out of updated means of communications used by 
consumers and debt collectors, including emails and text 
messages.

    The bill subjects debt owed to a federal agency or a state 
and local government to the requirements of the FDCPA and sets 
further restrictions beyond FDCPA requirements. The bill 
prohibits a collector of debt owed to a federal agency from 
collecting interest, fees, charges, or expenses. The bill also 
prohibits the Secretary of the Treasury from referring disaster 
aid debt to a third-party debt collector.

     H.R. 2547 undermines the CFPB's October 2020 Final 
Rule intended to modernize debt collection practices. In 
promulgating its final rule, the CFPB acknowledged the unique 
nature of certain types of debt and declined to extend the 
definition of debt and debt collectors to include creditors, 
debt buyers, or governments.
     The bill interferes with the federal government's 
ability to obtain payment owed to it, such as federal student 
loan payments, including fees and interest.
           This is outside this Committee's 
        jurisdiction and better addressed by the Committee on 
        Education and Labor.
     Moreover, ensuring state and local governments can 
efficiently collect payments owed is essential to these 
economies.
     The bill makes the U.S. Treasury Department 
responsible for collecting overpayments made by the Federal 
Emergency Management Agency (FEMA).
           The bill prohibits the government from 
        contracting with a third-party business to collect the 
        debt.
           The Department of Treasury has more 
        important responsibilities than collecting overpayments 
        made by FEMA.

    The bill expands the definition of a debt collector to 
include a person in a business that enforces security 
interests.

     H.R. 2547 rejects the U.S. Supreme Court's 2019 
decision in Obduskey v. McCarthy and Holthus LLP which 
recognized states' authority to regulate non-judicial 
foreclosures.
     H.R. 2547 is another attempt by the Democrats to 
prevent individuals and small businesses from recouping 
payments owed to them or to another.

    Ranking Member Patrick McHenry (NC-10) offered an amendment 
to replace the underlying bill with several targeted approaches 
to improve and strengthen the debt collection and credit 
reporting framework. This is a commonsense attempt to ensure 
our financial system remains safe and sound while protecting 
and introducing options for consumers. The amendment was 
blocked by Committee Democrats by party line vote of 23-30.
    Democrats continue to be emboldened by their ``one party 
rule,'' refusing to work with Republicans to identify 
bipartisan solutions that will help consumers who need it the 
most. Republicans will continue to advocate for policies that 
ensure Americans have access to affordable credit while 
ensuring the financial system remains safe and sound. For these 
reasons, Committee Republicans oppose H.R. 2547.

                                   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 (TX).
                                   William R. Timmons IV.
                                   Frank D. Lucas.
                                   Blaine Luetkemeyer.
                                   Steve Stivers.
                                   Andy Barr.
                                   Roger Williams (TX).
                                   Tom Emmer.
                                   Barry Loudermilk.
                                   Warren Davidson.
                                   David Kusoff.
                                   Anthony Gonzalez (OH).
                                   Bryan Steil.
                                   Denver Riggleman.
                                   Van Taylor.

                                  
                                  [all]