Debt Collection Practices Harmonization Act
Bill: H.R.2628 | Sponsor: Rep. Meeks, Gregory W. (D-NY)
Policy area: Finance and Financial Sector

Summary:
Debt Collection Practices Harmonization Act
This bill applies certain consumer protections regarding debt collection to debt owed to a state. It also specifies that existing limits on civil damages awarded for abusive practices by a debt collector must be adjusted for inflation.
A court may award injunctive relief for certain debt collection violations.
The Department of the Treasury may not contract with any debt collector or other private party to recoup overpayments of certain disaster assistance made to an individual or household by the Federal Emergency Management Agency (FEMA), except in cases of fraud or deceit.

To amend the Fair Debt Collection Practices Act to extend the 
provisions of that Act to cover a debt collector who is collecting debt 
owed to a State or local government, to index award amounts under such 
     Act for inflation, to provide for civil injunctive relief for 
            violations of such Act, 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 ``Debt Collection Practices 
Harmonization Act''.

SEC. 2. PREVENTING DECEPTIVE AND HARASSING PRACTICES WHEN COLLECTING 
              DEBT OWED TO A STATE OR LOCAL GOVERNMENT.

    Section 803(5) of the Fair Debt Collection Practices Act (15 U.S.C. 
1692a(5)) is amended--
            (1) by striking ``money arising out'' and inserting the 
        following: ``money--
                    ``(A) arising out'';
            (2) by striking ``judgment.'' and inserting ``judgment; 
        or''; and
            (3) by adding at the end the following:
                    ``(B) owed to a State.''.

SEC. 3. AWARD OF DAMAGES.

    (a) Additional Damages Indexed for Inflation.--
            (1) In general.--Section 813 of the Fair Debt Collection 
        Practices Act (15 U.S.C. 1692k) is amended 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 percentage 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 increase provided under 
        paragraph (1), 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 
                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 described in 
                subparagraph (A).''.
            (2) Applicability.--The increases made under section 813(f) 
        of the Fair Debt Collection Practices Act, as added by 
        paragraph (1) of this subsection, shall apply with respect to 
        failures to comply with a provision of such Act (15 U.S.C. 1601 
        et seq.) occurring on or after the date of enactment of this 
        Act.
    (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.''.

SEC. 4. PROHIBITION ON THE REFERRAL OF EMERGENCY INDIVIDUAL ASSISTANCE 
              DEBT.

    Chapter 3 of title 31, United States Code, is amended--
            (1) in subchapter II, by adding at the end the following:
``Sec. 334. Prohibition on the referral of emergency individual 
              assistance debt
    ``With respect to any assistance provided by the Federal 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 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 following:

``334. Prohibition on the referral of emergency individual assistance 
                            debt.''.
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