Stop Debt Collection Abuse Act of 2021
- Last Action
- 4/15/2021
Actions
- 2021-04-15Referred to the House Committee on Financial Services.
- 2021-04-15Introduced in House
- 2021-04-15Introduced in House
CRS Summary
As of 2021-04-15 (00)
Stop Debt Collection Abuse Act of 2021
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.
Subjects
- Congressional oversight
- Consumer credit
- Debt collection
- Government lending and loan guarantees
- Government studies and investigations
- State and local government operations
- User charges and fees
Sourced from Congress.gov (public domain).
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.