Bill with requirements on debt collectors’ communication with service members advances to Senate.
3/4/2020 9:00
Legislation amending the Fair Debt Collection Practices Act requirements on communication with military service members about debts passed in the U.S. House of Representatives 355-0 this week.
“ACA International applauds the U.S. House for unanimously passing a bipartisan bill that will benefit our servicemembers in reference to debt collection communications. We support consumer protection laws designed to ensure that all servicemembers – and all others – are treated with respect, professionalism and are not exposed to deceptive or unfair practices as part of their interaction with accounts receivable management industry professionals,” said ACA International CEO Mark Neeb. “We are reviewing the legislation and look forward to hearing additional comments as it moves to the Senate Committee on Banking, Housing and Urban Affairs.”
The Fair Debt Collection Practices for Service Members Act (H.R. 5003), sponsored by U.S. Reps. Madeline Dean, D-Pa., and Warren Davidson, R-Ohio, amends the FDCPA to state that debt collectors, “in connection with the collection of any debt of a covered member,” are prohibited from:
- Representing to service members that failure to cooperate with a debt collector will result in a reduction of rank, a revocation of security clearance, or military prosecution; or
- Communicating with a servicemember’s superiors in the chain of command.
The legislation also orders the Comptroller General of the U.S. to conduct a study and report to Congress on:
- The timely delivery of information to a covered service member (as defined in the FDCPA);
- Military readiness; and
- National security, including the extent to which covered members with security clearances would be impacted by uncollected debt.
The legislation, introduced in November 2019, was referred to the Senate Committee on Banking, Housing and Urban Affairs for consideration following the House’s approval.