WASHINGTON, D.C. — Today, the House Financial Services Committee unanimously passed H.R. 4403, the Stop Debt Collection Abuse Act, legislation introduced by the Ranking Member of the Subcommittee on National Security, International Development and Monetary Policy, Congressman French Hill (AR-02). This bill would help safeguard American consumers by strengthening protections against predatory debt collection practices.
“If Congress is going to set up fair debt collection practices to hold the private sector accountable, a federal agency collecting a debt from consumers should be held to the same standard,” saidCongressman Hill. “This bipartisan legislation will protect Arkansas consumers by putting government-hired debt collectors on a level playing field with private debt collectors. Additionally, studying debt collection practices can help identify the right balance between protecting consumers and ensuring that access to credit is not restricted.”
Currently, the Fair Debt Collection Practices Act (FDCPA) makes it illegal for debt collectors to use abusive, unfair, or deceptive practices when collecting debts from consumers. However, one of the biggest exemptions to the FDCPA are debt collectors hired by federal government entities. The Stop Debt Collection Abuse Act would help close that loophole by requiring federal agencies to be subject to the same high standards of the FDCPA and require the Government Accountability Office (GAO) to conduct a study into the use of third party debt collectors by state and local governments.
Congressman French Hill and Congressman Emanuel Cleaver (D-MO), the House sponsors of the Stop Debt Collection Abuse Act, pictured before a House Financial Services Subcommittee hearing.
Background:
Congressman Hill was joined by Congressman Emanuel Cleaver (D-MO) in introducing the Stop Debt Collection Abuse Act. Senator Mike Lee (R-UT) and Senator Cory Booker (D-NJ) introduced companion legislation in the Senate, S.2516.
