Today, Rep. Cindy Axne (IA-03) voted to strengthen protections for small business lending and to protect consumers from predatory debt collectors.
The Comprehensive Debt Collection Improvement Act takes a number of measures to protect servicemembers, students, small businesses, and other consumers from harassment and abuse by medical and private debt collectors.
“Predatory debt collectors have made record profits during the same pandemic crisis that has left millions of Americans struggling just to make ends meet,” said Rep. Axne. “This legislation will help put an end to the exploitative and abusive ways in which debt collectors can operate.”
The package of eight bills primarily dealing with the Fair Debt Collection Practices Act (FDCPA) was advanced by Rep. Axne and the House Financial Services Committee earlier this year.
FDCPA, which was enacted in 1977, provides consumer protections for third-party collectors. The protections include: banning making false representations, abuse (threats, etc.), manner and timing of contact with the consumer, and a requirement for disclosure to the consumer.
This bill would increase those protections by:
- Prohibiting debt collectors from contacting consumers by email or text without prior consent.
- Preventing medical debts from being reported to credit reporting agencies for one year and turned over to debt collectors for two years.
- Protecting servicemembers from threats against their rank or promotions, which can damage national security.
Original source can be found here
