The proposals on medical debt, FDCPA amendments and collection practices, among other topics, were at the center of ACA International’s advocacy efforts with the House Financial Services Committee. The Senate also recently approved legislation for a one-year call blocking pilot program.
12/21/2020 13:00
The House Financial Services Committee has issued final bill text of four pieces of legislation impacting the accounts receivable management industry ACA International focused on as part of its advocacy efforts this year.
ACA representatives John Bedard Jr., owner of the Bedard Law Group in Atlanta, and Sarah Auchterlonie, an ACA consultant and shareholder with Brownstein Hyatt Farber Schreck in Denver, testified at a House Financial Services Committee in a hearing in 2019 focused on several of the bills and the Consumer Financial Protection Bureau’s regulatory practices, ACA previously reported.
In the letter to committee House Financial Services Committee Chairwoman Maxine Waters, D-Calif., and Ranking Member Patrick McHenry, R-N.C., ACA CEO Mark Neeb shared the impact that extending the Fair Debt Collection Practices Act to additional types of debt proposed in some of the legislation would have on the accounts receivable management (ARM) industry, while equally expressing support for striking a balance in proposals focused on medical debt and out-of-statute debt, for example.
ACA also surveyed members on the impact of this legislation as part of its advocacy efforts and many of the topics in the legislation connect to regulations in the CFPB’s final debt collection rule released this year.
The legislation, on the U.S. House of Representatives calendar this week, includes:
H.R. 5330: Consumer Protection for Medical Debt Collections Act
The description of the bill, sponsored by U.S. Rep. Rashida Tlaib, D-Mich., was amended Dec. 15, 2020. The bill would “amend the Fair Debt Collection Practices Act to provide a timetable for the collection of medical debt by debt collectors, to amend the Fair Credit Reporting Act to prohibit consumer reporting agencies from issuing consumer reports containing information about debts related to medically necessary procedures, and for other purposes.”
ACA’s team worked on advocacy at the federal level in connection with the legislation, which could impact medical billing and consumers’ knowledge of unpaid bills and delay credit reporting, and encouraged members to reach out to their legislators about the impact of the proposal.
H.R. 3948: Debt Collection Practices Harmonization Act
This bill, from U.S. Rep. Gregory Meeks, D-N.Y., extends the FDCPA to cover debt owed to a state or local government and adds protections to consumers affected by national disasters.
According to the summary, “this bill applies certain consumer protections regarding debt collection to debt owed to a state. It also specifies that existing limits on civil damages awarded for abusive practices by a debt collector must be adjusted for inflation. A court may award injunctive relief for certain debt collection violations. The Department of the Treasury may not contract with any debt collector or other private party to recoup overpayments of certain disaster assistance made to an individual or household by the Federal Emergency Management Agency (FEMA).”
H.R. 5013: Small Business Fair Debt Collection Protection Act
U.S. Rep. Al Lawson, D-Fla., proposed H.R. 5013 to expand the FDCPA’s protections to cover small business loans, as determined by the Consumer Financial Protection Bureau in consultation with the U.S. Small Business Administration.
Amendments to the bill text include definitions of debt and commercial credit bureau and inserting sections on small-business debt.
In discussions of the legislation last year, U.S. Rep. Blaine Luetkemeyer, R-Mo., contended the CFPB should not have enforcement authority of commercial financial products, ACA previously reported.
Senate Data Analytics Robocall Technology Act of 2019
This bill, sponsored by U.S. Sen. Mike Crapo., R-Idaho, allows the Federal Communications Commission to conduct a one-year pilot program enabling telephone companies to block automated calls they believe to be unlawful.
It passed in the Senate Dec. 19 by unanimous consent.
ACA has sent numerous letters to the FCC and Federal Trade Commission outlining steps that should be taken concerning erroneous call blocking and mislabeling. Both agencies should take steps through regulatory actions to address this harmful activity.
Education about call blocking and labeling and its impact on the ARM industry remains a top advocacy priority for ACA going into 2021.
Read more on ACA’s advocacy in 2020 here and stay tuned for more in 2021. Visit acainternational.org and subscribe to ACA Daily and Collector magazine on our publications page for updates.