Comprehensive Debt Collection Protection: New Rights for Citizens
This act introduces several changes aimed at better protecting citizens, students, servicemembers, and small businesses from unfair debt collection practices. It limits harassment by debt collectors, introduces new rules for medical and student debts, and increases penalties for consumer rights violations. This gives citizens more control over their debts and better protection against abuses.
Key points
Restrictions on medical debt collection: prohibition on reporting certain medical debts to credit bureaus and extended time before reporting.
Enhanced protection for servicemembers: prohibition of threats regarding rank reduction, security clearance revocation, or prosecution due to debts.
Easier discharge of private student loans: possibility of discharge in case of death or total and permanent disability of the student or co-signer.
Limitations on debt collector communication: prohibition of unlimited emails, text messages, and social media messages without consent.
Increased penalties for debt collectors: higher maximum damages for consumer rights violations, adjusted for inflation.
Prohibition on federal emergency assistance debt referral: federal agencies cannot refer emergency assistance debts (e.g., FEMA) to private debt collectors, unless fraud occurred.
Status:
Expired
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