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ACA International - CBO - Debt Collection Bills May 2020

1.  H.R. 3948, the Debt Collection Practices Harmonization Act, authored by Rep. Gregory Meeks (D-NY-5), would amend the definition of debt in the Fair Debt Collection Practices Act to include money owed to a state.
  • Would adding new FDCPA requirements when collecting state owed debt impact revenue when collecting on behalf of states?
  • Do you collect debt owed to the Department of Treasury?
  • Do you collect debt on behalf of any state or local governments?
This bill also allows the damages amounts under the FDCPA to be tied to inflation. This means there would be an increase in FDCPA damages each year.

  • Can you estimate how much you spend on FDCPA related litigation?
  • If this increased each year, do you have any estimates on how much this would cost each year?
3. H.R. 5330, the Consumer Protection for Medical Debt Collections Act, authored by Rep. Rashida Tlaib (D-MI-13), would prohibit debt collectors from collecting certain medical debt for at least two years after the first due date for a consumer’s debt payment.
  • How much do you usually collect from consumers in the first two years?
  • How much annual revenue do you attain from medical debt collection?
4. H.R. 5013, the Small Business Fair Debt Collection Protection Act, authored by Rep. Al Lawson (D-FL-5), would amend the definition of debt in FDCPA and remove the term “consumer”. Therefore, under the bill, the scope of FDCPA would include business debts.

•  Do you have any anticipated costs that may be incurred as a result of the change?
5. H.R. 4403, the Stop Debt Collection Abuse Act of 2019, authored by Rep. Emanuel Cleaver (D-MO-5), would limit the amount debt collectors hired by the federal government may charge for debt collection services; specifically, the fees would not be allowed to exceed 10% of the amount collected. Is this a common practice for debt collectors hired by the federal government to receive payment that is contingent on the amount collected? If so, are the rates typically higher than 10%?

• Do you collect for the federal government?
  • Do you anticipate including debt buyers into the definition of debt collector to pose a burden?
Current Progress,
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