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New Federal Debt Collection Rules: Consumer Protection

This act changes how government agencies and debt collection companies can collect federal debts. It aims to better protect citizens from aggressive practices by introducing new time limits and mandatory notifications before a debt is handed over for collection. It also limits additional fees that can be charged by debt collectors.
Key points
Federal agencies can only transfer a debt for collection after 90 days from the due date.
Before a federal debt is transferred for collection, the agency must notify the debtor at least three times.
Fees charged by debt collectors for federal debts cannot exceed 10% of the collected amount and must be reasonable in relation to actual costs.
The act mandates a study of debt collection practices by state and local agencies to assess their impact on citizens.
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Status:
Expired
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Additional Information
Stop Debt Collection Abuse Act of 2021
Print number: HR 2572
Sponsor: Rep. Cleaver, Emanuel [D-MO-5]
Process start date: 2021-04-15
System Note: Lustra is free, publicly auditable civic infrastructure, with full source code available on GitHub. You are reading sterilized legislative data, processed by our radical neutrality engine to strip political spin and retain factual mechanics. We process only official government data. Original documents remain the authoritative source, always verify them if you can.
Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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Summary & Status

Key Questions about New Federal Debt Collection Rules: Consumer Protection

A structured overview of the legislative process, official sources, status and civic context.

What is the official ID of this bill?

The official print number for this legislation is HR 2572.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2021-04-15.

What are the main provisions?

Key points include:

  • Federal agencies can only transfer a debt for collection after 90 days from the due date.
  • Before a federal debt is transferred for collection, the agency must notify the debtor at least three times.
  • Fees charged by debt collectors for federal debts cannot exceed 10% of the collected amount and must be reasonable in relation to actual costs.
  • The act mandates a study of debt collection practices by state and local agencies to assess their impact on citizens.

What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Cleaver, Emanuel [D-MO-5].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Financial Services.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-27.

Analysis and Potential Impact of HR 2572

We don't know, that is up to you to decide. Summarizing raw data with AI is fundamentally different from predicting socio-economic outcomes. As of 2026, we believe impact assessment strictly requires a human in the loop to verify and judge. Review our public AI processing logs for full transparency, and use Lustra to track active legislation for instant status push notifications.

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