Stop Debt Collection Abuse Act of 2015

Summary: Stop Debt Collection Abuse Act of 2015 This bill amends the Fair Debt Collection Practices Act to redefine: (1) "debt" to include any obligation or alleged obligation of a consumer to pay a loan, an overpayment, a fine, penalty, a fee, or other money to a federal agency and that is at least 180 days past due; and (2) "debt collector" to include any person who regularly collects debts owed or allegedly owed to a federal agency.  A federal agency that is a creditor may sell or transfer a debt to a debt collector beginning 180 days after the obligation or alleged obligation arises.  The Act is further amended by making the collection of any amount (including any interest, fee, charge, or expense incidental to the principal obligation) an unfair practice unless:  the amount is expressly authorized by the agreement creating the debt or permitted by law (as under current law); or in the case of a debt owed a federal agency, the collection charge is reasonable in relation to actual collection costs, is authorized by a contract between the debt collector and the federal agency, and does not exceed 10% of the amount the debt collector collects.   The Government Accountability Office must study the use of debt collectors by state and local government agencies. 

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Stop Debt Collection Abuse Act of 
2015''.

SEC. 2. DEFINITIONS.

    Section 803 of the Fair Debt Collection Practices Act (15 U.S.C. 
1692a) is amended by striking paragraphs (5) and (6) and inserting the 
following:
            ``(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, penalty, a fee, or other money to a 
                        Federal agency; and
                            ``(ii) that is not less than 180 days past 
                        due.
            ``(6) The term `debt collector' means any person who--
                    ``(A) uses any instrumentality of interstate 
                commerce or the mails in any business the principal 
                purpose of which is the collection of any debts;
                    ``(B) regularly collects or attempts to collect, 
                directly or indirectly, by its own means or by hiring 
                another debt collector, debts owed or due or asserted 
                to be owed or due another or that have been purchased 
                from another; or
                    ``(C) regularly collects debts owed or allegedly 
                owed to a Federal agency.''.

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 180 days 
after the date on which the obligation or alleged obligation arises.
    ``(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; or
                    ``(B) in the case of any amount charged by a debt 
                collector collecting a debt for a Federal agency, 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.--Not later than 30 days after the date of enactment of 
this Act, 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 State and 
        local government agencies;
            (2) the contracting process that allows a 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 State and 
        local government agencies;
            (7) the amount of any revenue sharing agreements between 
        debt collectors and 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 180 days 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).