IB 
Union Calendar No. 10 
117TH CONGRESS 
1ST SESSION H. R. 2547 
[Report No. 117–23] 
To expand and enhance consumer, student, servicemember, and small business 
protections with respect to debt collection practices, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 15, 2021 
Ms. WATERS (for herself, Mr. MEEKS, Ms. DEAN, Mr. CLEAVER, Ms. 
VELA´ZQUEZ, Mr. AUCHINCLOSS, Ms. PRESSLEY, and Ms. TLAIB) intro-
duced the following bill; which was referred to the Committee on Finan-
cial Services 
APRIL 30, 2021 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on April 15, 2021] 
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A BILL 
To expand and enhance consumer, student, servicemember, 
and small business protections with respect to debt col-
lection practices, and for other purposes. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Comprehensive Debt Collection Improvement Act’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
TITLE I—SMALL BUSINESS LENDING FAIRNESS ACT 
Sec. 101. Short title. 
Sec. 102. Obligor transactions. 
Sec. 103. Enforcement of security interests. 
TITLE II —FAIR DEBT COLLECTION PRACTICES FOR 
SERVICEMEMBERS ACT 
Sec. 201. Short title. 
Sec. 202. Enhanced 
protection 
against 
debt 
collector 
harassment 
of 
servicemembers. 
Sec. 203. GAO study and report. 
TITLE III—PRIVATE LOAN DISABILITY DISCHARGE ACT 
Sec. 301. Short title. 
Sec. 302. Protections for obligors and cosigners in case of death or total and per-
manent disability. 
TITLE IV—CONSUMER PROTECTION FOR MEDICAL DEBT 
COLLECTIONS ACT 
Sec. 401. Short title. 
Sec. 402. Amendments to the Fair Debt Collection Practices Act. 
Sec. 403. Prohibition on consumer reporting agencies reporting certain medical 
debt. 
Sec. 404. Requirements for furnishers of medical debt information. 
TITLE V—ENDING DEBT COLLECTION HARASSMENT ACT 
Sec. 501. Short title. 
Sec. 502. Consumer protections relating to debt collection practices. 
TITLE VI—STOP DEBT COLLECTION ABUSE ACT 
Sec. 601. Short title. 
Sec. 602. Definitions. 
Sec. 603. Debt collection practices for debt collectors hired by Federal agencies. 
Sec. 604. Unfair practices. 
Sec. 605. GAO study and report. 
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TITLE VII—DEBT COLLECTION PRACTICES HARMONIZATION ACT 
Sec. 701. Short title. 
Sec. 702. Award of damages. 
Sec. 703. Prohibition on the referral of emergency individual assistance debt. 
TITLE VIII—NON-JUDICIAL FORECLOSURE DEBT COLLECTION 
CLARIFICATION ACT 
Sec. 801. Short title. 
Sec. 802. Enforcement of security interests. 
TITLE IX—EFFECTIVE DATE 
Sec. 901. Effective date. 
TITLE I—SMALL BUSINESS 
LENDING FAIRNESS ACT 
SEC. 101. SHORT TITLE. 
This title may be cited as the ‘‘Small Business Lending 
Fairness Act’’. 
SEC. 102. OBLIGOR TRANSACTIONS. 
(a) IN GENERAL.—Chapter 2 of the Truth in Lending 
Act (15 U.S.C. 1631 et seq.) is amended by adding at the 
end the following: 
‘‘§ 140B. Unfair credit practices 
‘‘(a) IN GENERAL.—In connection with the extension 
of credit or creation of debt in or affecting commerce, as 
defined in section 4 of the Federal Trade Commission Act 
(15 U.S.C. 44), including any advance of funds or sale or 
assignment of future income or receivables that may or may 
not be credit, no person may directly or indirectly take or 
receive from another person or seek to enforce an obligation 
that constitutes or contains a cognovit or confession of judg-
ment (for purposes other than executory process in the State 
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of Louisiana), warrant of attorney, or other waiver of the 
right to notice and the opportunity to be heard in the event 
of suit or process thereon. 
‘‘(b) EXEMPTION.—The exemptions described in sec-
tion 104 shall not apply to this section.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENTS.— 
(1) Section 130 of the Truth in Lending Act (15 
U.S.C. 1640) is amended by adding at the end the fol-
lowing: 
‘‘(m) CREDITOR.—In this section, the term ‘creditor’ 
refers to any person charged with compliance that is not 
the obligor.’’. 
(2) The table of sections in chapter 2 of the 
Truth in Lending Act (15 U.S.C. 1631 et seq.) is 
amended by adding at the end the following: 
‘‘140B. Unfair credit practices.’’. 
SEC. 103. ENFORCEMENT OF SECURITY INTERESTS. 
Section 103 of the Truth in Lending Act (15 U.S.C. 
1602) is amended by adding at the end the following: 
‘‘(ff) The term ‘debt’ means any obligation of a person 
to pay to another person money— 
‘‘(1) regardless of whether such obligation is ab-
solute or contingent; 
‘‘(2) that includes the right of the person pro-
viding the money to an equitable remedy for breach 
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of performance if the breach gives rise to a right to 
payment; and 
‘‘(3) regardless of whether the obligation or right 
to an equitable remedy described in paragraph (2) 
has been reduced to judgment, fixed, contingent, ma-
tured, unmatured, disputed, undisputed, recourse, 
nonrecourse, secured, or unsecured.’’. 
TITLE II —FAIR DEBT COLLEC-
TION 
PRACTICES 
FOR 
SERVICEMEMBERS ACT 
SEC. 201. SHORT TITLE. 
This title may be cited as the ‘‘Fair Debt Collection 
Practices for Servicemembers Act’’. 
SEC. 202. ENHANCED PROTECTION AGAINST DEBT COL-
LECTOR HARASSMENT OF SERVICEMEMBERS. 
(a) COMMUNICATION
IN CONNECTION WITH DEBT 
COLLECTION.—Section 805 of the Fair Debt Collection 
Practices Act (15 U.S.C. 1692c) is amended by adding at 
the end the following: 
‘‘(e) COMMUNICATIONS CONCERNING SERVICEMEMBER 
DEBTS.— 
‘‘(1) DEFINITION.—In this subsection, the term 
‘covered member’ means— 
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‘‘(A) a covered member or a dependent as 
defined in section 987(i) of title 10, United 
States Code; and 
‘‘(B)(i) an individual who was separated, 
discharged, or released from duty described in 
such section 987(i)(1), but only during the 365- 
day period beginning on the date of separation, 
discharge, or release; or 
‘‘(ii) a person, with respect to an individual 
described in clause (i), described in subpara-
graph (A), (D), (E), or (I) of section 1072(2) of 
title 10, United States Code. 
‘‘(2) PROHIBITIONS.—A debt collector may not, 
in connection with the collection of any debt of a cov-
ered member— 
‘‘(A) threaten to have the covered member 
reduced in rank; 
‘‘(B) threaten to have the covered member’s 
security clearance revoked; or 
‘‘(C) threaten to have the covered member 
prosecuted under chapter 47 of title 10, United 
States Code (the Uniform Code of Military Jus-
tice).’’. 
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(b) UNFAIR PRACTICES.—Section 808 of the Fair Debt 
Collection Practices Act (15 U.S.C. 1692f) is amended by 
adding at the end the following: 
‘‘(9) The representation to any covered member 
(as defined under section 805(e)(1)) that failure to co-
operate with a debt collector will result in— 
‘‘(A) a reduction in rank of the covered 
member; 
‘‘(B) a revocation of the covered member’s 
security clearance; or 
‘‘(C) prosecution under chapter 47 of title 
10, United States Code (the Uniform Code of 
Military Justice).’’. 
SEC. 203. GAO STUDY AND REPORT. 
(a) STUDY.—The Comptroller General of the United 
States shall conduct a study on the impact of debt collection 
on covered members (as defined under section 805(e)(1) of 
the Fair Debt Collection Practices Act, as added by section 
202), which shall— 
(1) identify types of false, deceptive, misleading, 
unfair, abusive, and harassing debt collection prac-
tices experienced by covered members and make rec-
ommendations to eliminate these practices; 
(2) identify collection practices of creditors and 
debt collectors experienced by covered members; 
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(3) discuss the effect of these practices on mili-
tary readiness; and 
(4) discuss any national security implications, 
including the extent to which covered members with 
security clearances would be impacted by uncollected 
debt. 
(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 com-
pleted study required under subsection (a). 
TITLE III—PRIVATE LOAN 
DISABILITY DISCHARGE ACT 
SEC. 301. SHORT TITLE. 
This title may be cited as the ‘‘Private Loan Disability 
Discharge Act of 2021’’. 
SEC. 302. PROTECTIONS FOR OBLIGORS AND COSIGNERS IN 
CASE OF DEATH OR TOTAL AND PERMANENT 
DISABILITY. 
(a) IN GENERAL.—Section 140(g) of the Truth in 
Lending Act (15 U.S.C. 1650(g)) is amended— 
(1) in paragraph (2)— 
(A) in the heading, by striking ‘‘IN CASE OF 
DEATH OF BORROWER’’; 
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(B) in subparagraph (A), by inserting after 
‘‘of the death’’, the following: ‘‘or total and per-
manent disability’’; and 
(C) in subparagraph (C), by inserting after 
‘‘of the death’’, the following: ‘‘or total and per-
manent disability’’; and 
(2) by adding at the end the following: 
‘‘(3) DISCHARGE IN CASE OF DEATH OR TOTAL 
AND
PERMANENT
DISABILITY
OF
BORROWER.—The 
holder of a private education loan shall, when notified 
of the death or total and permanent disability of a 
student obligor, discharge the liability of the student 
obligor on the loan and may not, after such notifica-
tion— 
‘‘(A) attempt to collect on the outstanding 
liability of the student obligor; and 
‘‘(B) in the case of total and permanent dis-
ability, monitor the disability status of the stu-
dent obligor at any point after the date of dis-
charge. 
‘‘(4) PRIVATE DISCHARGE IN CASES OF CERTAIN 
DISCHARGE FOR DEATH OR DISABILITY.—The holder 
of a private education loan shall, when notified of the 
discharge of liability of a student obligor on a loan 
described under section 108(f)(5)(A) of the Internal 
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Revenue Code of 1986, discharge any liability of the 
student obligor (and any cosigner) on any private 
education loan which the private education loan hold-
er holds and may not, after such notification— 
‘‘(A) attempt to collect on the outstanding 
liability of the student obligor; and 
‘‘(B) in the case of total and permanent dis-
ability, monitor the disability status of the stu-
dent obligor at any point after the date of dis-
charge. 
‘‘(5) TOTAL
AND
PERMANENT
DISABILITY
DE-
FINED.—For the purposes of this subsection and with 
respect to an individual, the term ‘total and perma-
nent disability’ means the individual is totally and 
permanently disabled, as such term is defined in sec-
tion 685.102(b) of title 34, Code of Federal Regula-
tions.’’. 
(b) RULEMAKING.—The Director of the Bureau of Con-
sumer Financial Protection may issue rules to implement 
the amendments made by subsection (a) as the Director de-
termines appropriate. 
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TITLE IV—CONSUMER PROTEC-
TION 
FOR 
MEDICAL 
DEBT 
COLLECTIONS ACT 
SEC. 401. SHORT TITLE. 
This title may be cited as the ‘‘Consumer Protection 
for Medical Debt Collections Act’’. 
SEC. 402. AMENDMENTS TO THE FAIR DEBT COLLECTION 
PRACTICES ACT. 
(a) DEFINITION.—Section 803 of the Fair Debt Collec-
tion Practices Act (15 U.S.C. 1692a) is amended by adding 
at the end the following: 
‘‘(9) The term ‘medical debt’ means a debt aris-
ing from the receipt of medical services, products, or 
devices.’’. 
(b) UNFAIR PRACTICES.—Section 808 of the Fair Debt 
Collection Practices Act (15 U.S.C. 1692f), as amended by 
section 202(b), is amended by adding at the end the fol-
lowing: 
‘‘(10) Engaging in activities to collect or at-
tempting to collect a medical debt owed or due or as-
serted to be owed or due by a consumer, before the end 
of the 2-year period beginning on the date that the 
first payment with respect to such medical debt is 
due.’’. 
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SEC. 403. PROHIBITION ON CONSUMER REPORTING AGEN-
CIES REPORTING CERTAIN MEDICAL DEBT. 
(a) DEFINITION.—Section 603 of the Fair Credit Re-
porting Act (15 U.S.C. 1681a) is amended by adding at 
the end the following: 
‘‘(bb) MEDICAL DEBT.—The term ‘medical debt’ means 
a debt arising from the receipt of medical services, products, 
or devices. 
‘‘(cc) MEDICALLY NECESSARY PROCEDURE.—The term 
‘medically necessary procedure’ means— 
‘‘(1) health care services or supplies needed to di-
agnose or treat an illness, injury, condition, disease, 
or its symptoms and that meet accepted standards of 
medicine; and 
‘‘(2) health care to prevent illness or detect ill-
ness at an early stage, when treatment is likely to 
work best (including preventive services such as pap 
tests, flu shots, and screening mammograms).’’. 
(b) IN GENERAL.—Section 605(a) of the Fair Credit 
Reporting Act (15 U.S.C. 1681c(a)) is amended by adding 
at the end the following new paragraphs: 
‘‘(9) Any information related to a debt arising 
from a medically necessary procedure. 
‘‘(10) Any information related to a medical debt, 
if the date on which such debt was placed for collec-
tion, charged to profit or loss, or subjected to any 
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similar action antedates the report by less than 365 
calendar days.’’. 
SEC. 404. REQUIREMENTS FOR FURNISHERS OF MEDICAL 
DEBT INFORMATION. 
(a) ADDITIONAL NOTICE REQUIREMENTS FOR MED-
ICAL DEBT.—Section 623 of the Fair Credit Reporting Act 
(15 U.S.C. 1681s-2) is amended by adding at the end the 
following: 
‘‘(f) ADDITIONAL NOTICE REQUIREMENTS FOR MED-
ICAL DEBT.—Before furnishing information regarding a 
medical debt of a consumer to a consumer reporting agency, 
the person furnishing the information shall send a state-
ment to the consumer that includes the following: 
‘‘(1) A notification that the medical debt— 
‘‘(A) may not be included on a consumer re-
port made by a consumer reporting agency until 
the later of the date that is 365 days after— 
‘‘(i) the date on which the person sends 
the statement; 
‘‘(ii) with respect to the medical debt of 
a borrower demonstrating hardship, a date 
determined by the Director of the Bureau; 
or 
‘‘(iii) the date described under section 
605(a)(10); and 
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‘‘(B) may not ever be included on a con-
sumer report made by a consumer reporting 
agency, if the medical debt arises from a medi-
cally necessary procedure. 
‘‘(2) A notification that, if the debt is settled or 
paid by the consumer or an insurance company be-
fore the end of the period described under paragraph 
(1)(A), the debt may not be reported to a consumer 
reporting agency. 
‘‘(3) A notification that the consumer may— 
‘‘(A) communicate with an insurance com-
pany to determine coverage for the debt; or 
‘‘(B) apply for financial assistance.’’. 
(b) FURNISHING OF MEDICAL DEBT INFORMATION.— 
Section 623 of the Fair Credit Reporting Act (15 U.S.C. 
1681s-2), as amended by subsection (a), is further amended 
by adding at the end the following: 
‘‘(g) FURNISHING OF MEDICAL DEBT INFORMATION.— 
‘‘(1) PROHIBITION
ON
REPORTING
DEBT
RE-
LATED TO MEDICALLY NECESSARY PROCEDURES.—No 
person shall furnish any information to a consumer 
reporting agency regarding a debt arising from a 
medically necessary procedure. 
‘‘(2) TREATMENT OF OTHER MEDICAL DEBT IN-
FORMATION.—With respect to a medical debt not de-
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scribed under paragraph (1), no person shall furnish 
any information to a consumer reporting agency re-
garding such debt before the end of the 365-day period 
beginning on the later of— 
‘‘(A) the date on which the person sends the 
statement described under subsection (f) to the 
consumer; 
‘‘(B) with respect to the medical debt of a 
borrower demonstrating hardship, a date deter-
mined by the Director of the Bureau; or 
‘‘(C) 
the 
date 
described 
in 
section 
605(a)(10). 
‘‘(3) TREATMENT OF SETTLED OR PAID MEDICAL 
DEBT.—With respect to a medical debt not described 
under paragraph (1), no person shall furnish any in-
formation to a consumer reporting agency regarding 
such debt if the debt is settled or paid by the con-
sumer or an insurance company before the end of the 
365-day period described under paragraph (2). 
‘‘(4) BORROWER DEMONSTRATING HARDSHIP DE-
FINED.—In this subsection, and with respect to a 
medical debt, the term ‘borrower demonstrating hard-
ship’ means a borrower or a class of borrowers who, 
as determined by the Director of the Bureau, is facing 
or has experienced extenuating life circumstances or 
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events that result in severe financial or personal bar-
riers such that the borrower or class of borrowers does 
not have the capacity to repay the medical debt.’’. 
TITLE V—ENDING DEBT 
COLLECTION HARASSMENT ACT 
SEC. 501. SHORT TITLE. 
This title may be cited as the ‘‘Ending Debt Collection 
Harassment Act of 2021’’. 
SEC. 502. CONSUMER PROTECTIONS RELATING TO DEBT 
COLLECTION PRACTICES. 
(a) REPORTS ON DEBT COLLECTION COMPLAINTS AND 
ENFORCEMENT ACTIONS.— 
(1) SEMI-ANNUAL REPORT.—Section 1016(c) of 
the Consumer Financial Protection Act of 2010 (12 
U.S.C. 5496(c)) is amended— 
(A) in paragraph (8), by striking ‘‘and’’ at 
the end; 
(B) in paragraph (9), by striking the period 
at the end and inserting a semicolon; and 
(C) by adding at the end the following: 
‘‘(10) an analysis of the consumer complaints re-
ceived by the Bureau with respect to debt collection, 
including a State-by-State breakdown of such com-
plaints; and 
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‘‘(11) a list of enforcement actions taken against 
debt collectors during the preceding year.’’. 
(2) ANNUAL
REPORT.—Section 815(a) of the 
Fair Debt Collection Practices Act (15 U.S.C. 
1692m(a)) is amended by adding at the end the fol-
lowing new sentence: ‘‘Each such report shall also in-
clude an analysis of the impact of electronic commu-
nications by debt collectors on consumer experiences 
with debt collection, including a consideration of con-
sumer complaints about the use of electronic commu-
nications in debt collection.’’. 
(b) LIMITATION ON DEBT COLLECTION RULES.—Sec-
tion 1022 of the Consumer Financial Protection Act of 2010 
(12 U.S.C. 5512) is amended by adding at the end the fol-
lowing: 
‘‘(e) LIMITATION ON DEBT COLLECTION RULES.—The 
Director may not issue any rule with respect to debt collec-
tion that allows a debt collector to send unlimited email 
and text messages to a consumer.’’. 
(c) PROTECTION OF CONSUMERS FROM UNLIMITED 
TEXTS AND EMAILS USED IN DEBT COLLECTION.—Section 
806 of the Fair Debt Collection Practices Act (15 U.S.C. 
1692d) is amended by adding at the end the following new 
paragraph: 
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‘‘(7) Contacting the consumer electronically (in-
cluding by email or text message) without consent of 
the consumer to communicate via that method, after 
such consent has been withdrawn, or more frequently 
than the consumer consents to be contacted.’’. 
(d) ENSURING CONSUMERS RECEIVE NOTICE OF DEBT 
COLLECTION PROTECTIONS.—Section 809(a) of the Fair 
Debt Collection Practices Act (15 U.S.C. 1692g(a)) is 
amended in the matter preceding paragraph (1)— 
(1) by striking ‘‘Within five days’’ and all that 
follows through ‘‘any debt,’’ and inserting the fol-
lowing: ‘‘NOTICE OF DEBT; CONTENTS.—Within five 
days after the initial communication with a con-
sumer in connection with the collection of any debt,’’; 
and 
(2) by striking ‘‘, unless the following informa-
tion is contained in the initial communication or the 
consumer has paid the debt,’’. 
(e) IMPROVED LIMITATIONS ON DEBT COLLECTION 
RULES.—Section 814(d) of the Fair Debt Collection Prac-
tices Act (15 U.S.C. 1692l(d)) is amended by adding at the 
end the following: ‘‘Such rules— 
‘‘(1) may not allow a debt collector to send un-
limited electronic communications to a consumer; 
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‘‘(2) shall require debt collectors to obtain con-
sent directly from consumers before contacting them 
using a method other than by postal mail or by 
phone; 
‘‘(3) may not waive the requirements of the Elec-
tronic Signatures in Global and National Commerce 
Act (15 U.S.C. 7001 et seq.); and 
‘‘(4) shall allow consumers to opt out of any 
method of communication that the debt collector uses 
to communicate with consumers, including a method 
for which such consumer had given prior consent.’’. 
TITLE VI—STOP DEBT 
COLLECTION ABUSE ACT 
SEC. 601. SHORT TITLE. 
This title may be cited as the ‘‘Stop Debt Collection 
Abuse Act of 2021’’. 
SEC. 602. 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 ‘‘col-
lection of such debt’’; 
(2) by amending paragraph (5) to read as fol-
lows: 
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‘‘(5) The term ‘debt’ means any obligation or al-
leged obligation of a consumer— 
‘‘(A) to pay money arising out of a trans-
action in which the money, property, insurance 
or services which are the subject of the trans-
action are primarily for personal, family, or 
household purposes, whether or not such obliga-
tion has been reduced to judgment; 
‘‘(B) to pay a loan, overpayment, fine, pen-
alty, restitution, fee, or other money currently or 
originally owed to or guaranteed by a Federal or 
State government, including any courts or agen-
cies; or 
‘‘(C) which is secured by real or personal 
property that is used or was obtained primarily 
for personal, family, or household purposes, 
where such property is subject to forfeiture or re-
possession upon nonpayment of the obligation or 
alleged obligation.’’; and 
(3) in paragraph (6)— 
(A) by redesignating subparagraphs (A) 
through (F) as clauses (i) through (vi), respec-
tively; 
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(B) in clause (iii), as so redesignated, by 
inserting ‘‘(not including an independent con-
tractor)’’ after ‘‘any State’’; 
(C) by amending clause (vi), as so redesig-
nated, to read as follows: 
‘‘(vi) any person collecting or attempting to 
collect any debt owed or due or asserted to be 
owed or due another to the extent such activity— 
‘‘(I) is incidental to a bona fide fidu-
ciary obligation or a bona fide escrow ar-
rangement; 
‘‘(II) concerns a debt which was origi-
nated by such person; 
‘‘(III) concerns a debt which was not 
in default at the time it was obtained by 
such person; or 
‘‘(IV) concerns a debt obtained by such 
person as a secured party in a commercial 
credit transaction involving the creditor.’’; 
(D) by striking the paragraph designation 
and the first and second sentences and inserting 
the following: 
‘‘(6)(A) The term ‘debt collector’ means— 
‘‘(i) any person who uses any instrumen-
tality of interstate commerce or the mails in any 
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business the principal purpose of which is the 
collection of any debts; 
‘‘(ii) any person 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; 
‘‘(iii) any person who regularly collects 
debts currently or originally owed or allegedly 
owed to a Federal or State agency or court; or 
‘‘(iv) 
notwithstanding 
subparagraph 
(B)(vi), any creditor who in the process of col-
lecting debts of such creditor, uses another name 
that would indicate that a third person is col-
lecting or attempting to collect such debts.’’; and 
(E) in the fourth sentence, by striking ‘‘The 
term does not include’’ and inserting the fol-
lowing: 
‘‘(B) The term does not include’’. 
SEC. 603. DEBT COLLECTION PRACTICES FOR DEBT COL-
LECTORS HIRED BY FEDERAL AGENCIES. 
(a) IN GENERAL.—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: 
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‘‘§ 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 delin-
quent or defaults. 
‘‘(b) REQUIRED NOTICE.— 
‘‘(1) IN GENERAL.—Before transferring or selling 
a debt described in section 803(5)(B) to a debt col-
lector or contracting with a debt collector to collect 
such a debt, a Federal agency shall notify the con-
sumer not fewer than 3 times that the Federal agency 
will take such action. 
‘‘(2) FREQUENCY OF NOTIFICATIONS.—The sec-
ond 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.’’. 
(b) CLERICAL AMENDMENT.—The table of contents for 
the Fair Debt Collection Practices Act is amended by insert-
ing after the item relating to section 812 the following: 
‘‘812A. Debt collection practices for debt collectors hired by Federal agencies.’’. 
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SEC. 604. 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 sec-
tion 803(5)(B), such amount is— 
‘‘(i) reasonable in relation to the ac-
tual costs of the collection; 
‘‘(ii) authorized by a contract between 
the debt collector and the Federal or State 
government; and 
‘‘(iii) not greater than 10 percent of 
the amount collected by the debt collector.’’. 
SEC. 605. GAO STUDY AND REPORT. 
(a) STUDY.—The Comptroller General of the United 
States shall commence a study on the use of debt collectors 
by Federal, State, and local government agencies, includ-
ing— 
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(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 col-
lection 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 wrong-
fully attributed; 
(6) the revenues received by debt collectors from 
Federal, State, and local government agencies; 
(7) the amount of any revenue sharing agree-
ments 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; 
(9) information regarding the amount collected 
by Federal, State, and local government agencies 
through debt collectors, including the total amount 
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and the percentage of the amount referred to the debt 
collectors; 
(10) the full cost of outsourcing collection to debt 
collectors; 
(11) government agency oversight of debt collec-
tors to ensure that the rights of a consumer (as de-
fined in section 803(3) of the Fair Debt Collection 
Practices Act (15 U.S.C. 1692a(3))) are protected and 
that any debt relief and payment options legally 
available to consumers is effectively communicated 
and made available; 
(12) the extent to which Federal, State, and local 
contracts with debt collectors reflect or omit effective 
measures to encourage debt collectors to align their 
practices with public policy concerns (including relief 
for consumers experiencing financial hardship) be-
yond maximizing debt collection; 
(13) the extent to which debt collectors induce 
payment through use or threat of adverse government 
actions, such as arrest warrants or suspension of li-
censes or vehicle registration; and 
(14) demographic data, including race and in-
come information, regarding the individuals subject 
to private collection of debts owed to government enti-
ties. 
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(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 com-
pleted study required under subsection (a). 
TITLE 
VII—DEBT 
COLLECTION 
PRACTICES HARMONIZATION 
ACT 
SEC. 701. SHORT TITLE. 
This title may be cited as the ‘‘Debt Collection Prac-
tices Harmonization Act’’. 
SEC. 702. AWARD OF DAMAGES. 
(a) ADDITIONAL DAMAGES INDEXED
FOR INFLA-
TION.— 
(1) IN GENERAL.—Section 813 of the Fair Debt 
Collection Practices Act (15 U.S.C. 1692k) is amend-
ed— 
(A) in subsection (a)(2)— 
(i) in subparagraph (A), by striking ‘‘; 
or’’ and inserting the following: ‘‘with re-
spect to any one action taken by a debt col-
lector in violation of this subchapter; or’’; 
(ii) in subparagraph (B)(ii), by strik-
ing ‘‘or 1 per centum of the net worth of the 
debt collector; and’’ and inserting the fol-
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lowing: ‘‘or 5 percent of the gross annual 
revenue of the debt collector; and’’; 
(B) in subsection (b), by inserting ‘‘the 
maximum amount of statutory damages at the 
time of noncompliance,’’ before ‘‘the frequency’’ 
each place it appears; and 
(C) by adding at the end the following: 
‘‘(f) ADJUSTMENT FOR INFLATION.— 
‘‘(1) INITIAL ADJUSTMENT.—Not later than 90 
days after the date of the enactment of this subsection, 
the Bureau shall provide a percentage increase 
(rounded to the nearest multiple of $100 or $1,000, as 
applicable) in the amounts set forth in this section 
equal to the percentage by which— 
‘‘(A) the Consumer Price Index for All 
Urban Consumers (all items, United States city 
average) for the 12-month period ending on the 
June 30 preceding the date on which the percent-
age increase is provided, exceeds 
‘‘(B) the Consumer Price Index for the 12- 
month period preceding January 1, 1978. 
‘‘(2) ANNUAL
ADJUSTMENTS.—With respect to 
any fiscal year beginning after the date of the in-
crease provided under paragraph (1), the Bureau 
shall provide a percentage increase (rounded to the 
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nearest multiple of $100 or $1,000, as applicable) in 
the amounts set forth in this section equal to the per-
centage by which— 
‘‘(A) the Consumer Price Index for All 
Urban Consumers (all items, United States city 
average) for the 12-month period ending on the 
June 30 preceding the beginning of the fiscal 
year for which the increase is made, exceeds 
‘‘(B) the Consumer Price Index for the 12- 
month period preceding the 12-month period de-
scribed in subparagraph (A).’’. 
(2) APPLICABILITY.—The increases made under 
section 813(f) of the Fair Debt Collection Practices 
Act, as added by paragraph (1)(C) of this subsection, 
shall apply with respect to failures to comply with a 
provision of such Act (15 U.S.C. 1601 et seq.) occur-
ring on or after the date of enactment of this section. 
(b) INJUNCTIVE RELIEF.—Section 813(d) of the Fair 
Debt Collection Practices Act (15 U.S.C. 1692k(d)) is 
amended by adding at the end the following: ‘‘In a civil 
action alleging a violation of this title, the court may award 
appropriate relief, including injunctive relief.’’. 
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SEC. 703. PROHIBITION ON THE REFERRAL OF EMERGENCY 
INDIVIDUAL ASSISTANCE DEBT. 
Chapter 3 of title 31, United States Code, is amend-
ed— 
(1) in subchapter II, by adding at the end the 
following: 
‘‘§ 334. Prohibition on the referral of emergency indi-
vidual assistance debt 
‘‘With respect to any assistance provided by the Fed-
eral Emergency Management Agency to an individual or 
household pursuant to the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act (42 U.S.C. 5122 et seq.), if 
the Secretary of the Treasury seeks to recoup any amount 
of such assistance because of an overpayment, the Secretary 
may not contract with any debt collector as defined in sec-
tion 803(6) of the Fair Debt Collection Practices Act (15 
U.S.C. 1692a(6)) or other private party to collect such 
amounts, unless the overpayment occurred because of fraud 
or deceit and the recipient of such assistance knew or should 
have known about such fraud or deceit.’’; and 
(2) in the table of contents for such chapter, by 
inserting after the item relating to section 333 the fol-
lowing: 
‘‘334. Prohibition on the referral of emergency individual assistance debt.’’. 
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TITLE 
VIII—NON-JUDICIAL 
FORECLOSURE DEBT COLLEC-
TION CLARIFICATION ACT 
SEC. 801. SHORT TITLE. 
This title may be cited as the ‘‘Non-Judicial Fore-
closure Debt Collection Clarification Act’’. 
SEC. 802. ENFORCEMENT OF SECURITY INTERESTS. 
Section 803(6) of the Fair Debt Collection Practices 
Act (15 U.S.C. 1692a(6)) is amended by striking ‘‘For the 
purpose of section 808(6), such term also includes any per-
son who uses any instrumentality of interstate commerce 
or the mails in any business the principal purpose of which 
is the enforcement of security interests.’’. 
TITLE IX—EFFECTIVE DATE 
SEC. 901. EFFECTIVE DATE. 
This Act and the amendments made by this Act shall 
take effect on the date that is 180 days after the date of 
enactment of this Act. 
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