Stop Debt Collection Abuse Act of 2017
This bill amends the Fair Debt Collection Practices Act to apply that Act's restrictions to collectors of debt owed to a federal agency.
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 shall study and report to Congress on the use of debt collectors by federal, state, and local government agencies.
[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 864 Introduced in House (IH)]
<DOC>
115th CONGRESS
1st Session
H. R. 864
To amend the Fair Debt Collection Practices Act to restrict the debt
collection practices of certain debt collectors.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 3, 2017
Mrs. Love (for herself, Mr. Ellison, Mr. Hill, and Mr. Cleaver)
introduced the following bill; which was referred to the Committee on
Financial Services
_______________________________________________________________________
A BILL
To amend the Fair Debt Collection Practices Act to restrict the debt
collection practices of certain debt collectors.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Stop Debt Collection Abuse Act of
2017''.
SEC. 2. DEFINITIONS.
Section 803 of the Fair Debt Collection Practices Act (15 U.S.C.
1692a) is amended--
(1) in paragraph (4), by striking ``facilitating collection
of such debt for another'' and inserting ``collection of such
debt'';
(2) by amending paragraph (5) to read as follows:
``(5) The term `debt' means--
``(A) any obligation or alleged obligation of a
consumer to pay money arising out of a transaction in
which the money, property, insurance, or services which
are the subject of the transaction are primarily for
personal, family, or household purposes, whether or not
such obligation has been reduced to judgment; or
``(B) any obligation or alleged obligation of a
consumer--
``(i) to pay a loan, an overpayment, a
fine, a penalty, a fee, or other money
currently or originally owed to a Federal
agency; and
``(ii) that is not less than 180 days past
due.''; and
(3) in paragraph (6)--
(A) by striking the first sentence and inserting
the following: ``The term `debt collector' means any
person who uses any instrumentality of interstate
commerce or the mails in any business the principal
purpose of which is the collection of any debts; who
regularly collects or attempts to collect, directly or
indirectly, by the person's own means or by hiring
another debt collector, debts owed or due or asserted
to be owed or due another or that have been obtained by
assignment or transfer from another; or who regularly
collects debts currently or originally owed or
allegedly owed to a Federal agency.''; and
(B) in subparagraph (F), by inserting ``or that has
been obtained by assignment or transfer from another''
after ``owed or due another''.
SEC. 3. DEBT COLLECTION PRACTICES FOR DEBT COLLECTORS HIRED BY
GOVERNMENT AGENCIES.
The Fair Debt Collection Practices Act (15 U.S.C. 1692 et seq.) is
amended by inserting after section 812 (15 U.S.C. 1692j) the following:
``Sec. 812A. Debt collection practices for debt collectors hired by
Federal agencies
``(a) Limitation on Time To Turn Debt Over to Debt Collector.--A
Federal agency that is a creditor may sell or transfer a debt described
in section 803(5)(B) to a debt collector not earlier than 90 days after
the date on which the obligation or alleged obligation becomes
delinquent or defaults.
``(b) Required Notice.--
``(1) In general.--Before transferring or selling a debt
described in section 803(5)(B) to a debt collector or
contracting with a debt collector to collect such a debt, a
Federal agency shall notify the consumer not fewer than 3 times
that the Federal agency will take such action.
``(2) Frequency of notifications.--The second and third
notifications described in paragraph (1) shall be made not less
than 30 days after the date on which the previous notification
is made.''.
SEC. 4. UNFAIR PRACTICES.
Section 808 of the Fair Debt Collection Practices Act (15 U.S.C.
1692f) is amended by striking paragraph (1) and inserting the
following:
``(1) The collection of any amount (including any interest,
fee, charge, or expense incidental to the principal obligation)
unless--
``(A) such amount is expressly authorized by the
agreement creating the debt or permitted by law; and
``(B) in the case of any amount charged by a debt
collector collecting a debt described in section
803(5)(B), such amount is--
``(i) reasonable in relation to the actual
costs of the collection;
``(ii) authorized by a contract between the
debt collector and the Federal agency; and
``(iii) not greater than 10 percent of the
amount collected by the debt collector.''.
SEC. 5. GAO STUDY AND REPORT.
(a) Study.--The Comptroller General of the United States shall
commence a study on the use of debt collectors by State and local
government agencies, including--
(1) the powers given to the debt collectors by Federal,
State, and local government agencies;
(2) the contracting process that allows a Federal, State,
or local government agency to award debt collection to a
certain company, including the selection process;
(3) any fees charged to debtors in addition to principal
and interest on the outstanding debt;
(4) how the fees described in paragraph (3) vary from State
to State;
(5) consumer protection at the State level that offer
recourse to those whom debts have been wrongfully attributed;
(6) the revenues received by debt collectors from Federal,
State, and local government agencies;
(7) the amount of any revenue sharing agreements between
debt collectors and Federal, State, and local government
agencies;
(8) the difference in debt collection procedures across
geographic regions, including the extent to which debt
collectors pursue court judgments to collect debts; and
(9) any legal immunity or other protections given to the
debt collectors hired by State and local government agencies,
including whether the debt collectors are subject to the Fair
Debt Collection Practices Act (15 U.S.C. 1692 et seq.).
(b) Report.--Not later than one year after the date of enactment of
this Act, the Comptroller General of the United States shall submit to
Congress a report on the completed study required under subsection (a).
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
Hearings Held by the Subcommittee on Financial Institutions and Consumer Credit Prior to Referral.
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