Title: Fair Debt Collection Practices for Servicemembers Act
Policy area: Finance and Financial Sector

Summary:
Fair Debt Collection Practices for Servicemembers Act
This bill prohibits a debt collector from representing to service members that failure to cooperate with a debt collector will result in a reduction of rank, a revocation of security clearance, or military prosecution. The Government Accountability Office must report on the impact of this prohibition on the timely delivery of information to service members, military readiness, and national security.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1491 Introduced in House (IH)]

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117th CONGRESS
  1st Session
                                H. R. 1491

  To amend the Fair Debt Collection Practices Act to provide enhanced 
 protection against debt collector harassment of members of the Armed 
                    Forces, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 2, 2021

   Ms. Dean introduced the following bill; which was referred to the 
 Committee on Financial Services, and in addition to the Committee on 
the Budget, for a period to be subsequently determined by the Speaker, 
 in each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
  To amend the Fair Debt Collection Practices Act to provide enhanced 
 protection against debt collector harassment of members of the Armed 
                    Forces, 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 ``Fair Debt Collection Practices for 
Servicemembers Act''.

SEC. 2. ENHANCED PROTECTION AGAINST DEBT COLLECTOR 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--
                    ``(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 subparagraph (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 covered 
        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 Justice).''.
    (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 cooperate 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. 3. GAO STUDY.

    The Comptroller General of the United States shall conduct a study 
and submit a report to Congress on the impact of this Act on--
            (1) the timely delivery of information to a covered member 
        (as defined in section 805(e) of the Fair Debt Collection 
        Practices Act, as added by this Act);
            (2) military readiness; and
            (3) national security, including the extent to which 
        covered members with security clearances would be impacted by 
        uncollected debt.

SEC. 4. DETERMINATION OF BUDGETARY EFFECTS.

    The budgetary effects of this Act, for the purpose of complying 
with the Statutory Pay-As-You-Go Act of 2010, shall be determined by 
reference to the latest statement titled ``Budgetary Effects of PAYGO 
Legislation'' for this Act, submitted for printing in the Congressional 
Record by the Chairman of the House Budget Committee, provided that 
such statement has been submitted prior to the vote on passage.
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