Stronger Protection for Servicemembers Against Debt Collector Harassment and Threats.
This law enhances protection for active servicemembers, their dependents, and recent veterans (up to one year post-service) against aggressive debt collection tactics. Debt collectors are explicitly banned from threatening military personnel with consequences related to their service, such as rank reduction or loss of security clearance. The goal is to safeguard the financial stability and military careers of citizens serving in the armed forces.
Key points
Debt collectors are prohibited from threatening servicemembers with reduction in rank or revocation of security clearance to collect a debt.
Collectors cannot threaten servicemembers with prosecution under the Uniform Code of Military Justice (UCMJ) over unpaid debts.
These protections cover active duty personnel, their families, and individuals discharged within the previous 365 days.
Status:
Expired
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