Small Business Fair Debt Collection Protection Act
Bill: H.R.6814 | Sponsor: Rep. Lawson, Al, Jr. (D-FL)
Policy area: Finance and Financial Sector

Summary:
Small Business Fair Debt Collection Protection Act
This bill applies consumer debt collection protections to small businesses, including protections regarding debt collection methods and third-party debt collection.

To apply the Fair Debt Collection Practices Act to small business debt 
  to the same extent as such Act applies to consumers, and for other 
                               purposes.

    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 ``Small Business Fair Debt Collection 
Protection Act''.

SEC. 2. FAIR DEBT COLLECTION PRACTICES FOR LOANS TO SMALL BUSINESSES.

    (a) In General.--The Fair Debt Collection Practices Act (15 U.S.C. 
1692 et seq.) is amended--
            (1) in section 803--
                    (A) by amending paragraph (5) to read as follows:
            ``(5) The term `debt' means any obligation or alleged 
        obligation to pay money arising out of a transaction, whether 
        or not such obligation has been reduced to judgment.''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(9) The term `commercial credit bureau' means any person 
        which, for monetary fees, dues, or on a cooperative nonprofit 
        basis, regularly engages in whole or in part in the practice of 
        assembling or evaluating commercial credit information or other 
        information on businesses for the purpose of furnishing credit 
        reports to third parties, and which uses any means or facility 
        of interstate commerce for the purpose of preparing or 
        furnishing credit reports.'';
            (2) by redesignating section 819 as section 820; and
            (3) by inserting after section 818 the following:
``Sec. 819. Application to small business debt
    ``(a) In General.--This Act shall apply to small business debt to 
the same extent as this Act applies to debt of consumers.
    ``(b) Small Business Debt Defined.--The term `small business 
debt'--
            ``(1) means any non-equity obligation or alleged obligation 
        of a partnership, corporation, trust, estate, cooperative, 
        association, government or governmental subdivision or agency, 
        or other entity that is less than $5,000,000; and
            ``(2) does not include any obligation or alleged 
        obligation--
                    ``(A) of an individual; or
                    ``(B) that is primarily for personal, family, or 
                household purposes.''.
    (b) Clerical Amendment.--The table of contents for the Fair Debt 
Collection Practices Act is amended by striking the item relating to 
section 819 and inserting the following:

``819. Application to small business debt.
``820. Effective date.''.
    (c) Conforming Amendments.--The Fair Debt Collection Practices Act 
(15 U.S.C. 1692 et seq.) is amended--
            (1) in section 805(b), by inserting ``or a commercial 
        credit bureau (as applicable)'' after ``consumer reporting 
        agency'';
            (2) in section 806(3)--
                    (A) by striking ``consumers who'' and inserting 
                ``consumers or small businesses that''; and
                    (B) by inserting ``or to a commercial credit bureau 
                (as applicable),'' after ``consumer reporting agency''; 
                and
            (3) in section 807(16), by inserting ``or a commercial 
        credit bureau'' after ``this Act''.
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