H.R. 4403 · 116th Congress
Stop Debt Collection Abuse Act of 2019
- Stage
- Reported from committee
- Sponsor
- Emanuel Cleaver
- Introduced
- 2019-09-19
- Latest action
- 2020-12-15 · Reported (Amended) by the Committee on Financial Services. H. Rept. 116-654.
Summary
Stop Debt Collection Abuse Act of 2019
This bill applies certain consumer protections regarding debt collection to debt owed to a federal agency and to debt buyers.
A federal agency that is a creditor may not sell or transfer a debt to a debt collector until 90 days after the obligation becomes delinquent or defaults. Specified notice to the consumer of such a sale or transfer is required.
A collector of debt owed to a federal agency may not collect any interest, fee, charge, or expense that is (1) unreasonable in relation to actual costs, (2) not authorized by a contract between the debt collector and the federal agency, or (3) greater than 10% of the amount collected.
The Government Accountability Office must report on the use of debt collectors by federal, state, and local government agencies.