About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

1 1 (May 20, 2021)

handle is hein.crs/govedjt0001 and id is 1 raw text is: Congressional ~.Research Service nf rming the legistive debate snce 114 House Passes the Comprehensive Debt Collection Improvement Act (H.R. 2547) May 20, 2021 On May 13, 2021, the House passed the Comprehensive Debt Collection Improvement Act (H.R. 2547; H.Rept. 117-23), which would amend laws relating to the debt collection market, including the Fair Debt Collection Practices Act (FDCPA; 15 U.S.C. §@1692-1692f). Among other things, the bill would limit debt collectors' email and text messages to consumers; prohibit consumer reporting agencies from including certain medical debts related to medically necessary procedures in consumer credit reports; and make all federal and state government debts subject to the FDCPA. It also would provide military servicemembers additional debt collection protections. This Insight provides an overview of the debt collection market and its regulation, and analyzes selected provisions of H.R. 2547. For more information about debt collection, see CRS Report R46477, The Debt Collection Market and Selected Policy Issues, by Cheryl R. Cooper. For more information about the FDCPA, see CRS In Focus IF 11247, The Fair Debt Collection Practices Act: Legal Framework, by Kevin M. Lewis. Debt Collection Market and Regulation When a consumer defaults on a debt, a third-party debt collector often collects the debt obligation rather than the original lender. Lenders contract with debt collectors to collect their debts. The U.S. debt collection market is large and impacts many consumers. According to a Consumer Financial Protection Bureau (CFPB) survey, approximately one-third of consumers with a credit bureau file reported being contacted by at least one lender or assigned debt collector trying to collect on a debt in the previous year. Debt collectors generally expect to collect a fraction of the total value of any particular debt, knowing that some consumers will not pay back their debts in full. Therefore, the parties can negotiate the amount and payment schedule of the debt. If a consumer does not settle a debt, the debt owner often has several options, such as repossessing the collateral for secured loans (e.g., car, house) or garnishing a consumer's wages after obtaining a court order. Debt collectors have the option, but are not required, to furnish information about the debt to credit bureaus. Consumers do not choose the debt collectors with whom they engage. Therefore, consumer protection laws and regulations may be particularly consequential in this market. According to the CFPB, debt Congressional Research Service https://crsreports.congress.gov IN11678 CRS INSIGHT Prepared for Members and Committees of Congress

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most