To provide for a temporary debt collection moratorium during the COVID-19 emergency period, and for other purposes.

2/8/2022, 11:15 PM

This bill places restrictions on the collection of debt owed by a consumer, nonprofit organization, or small business during the COVID-19 (i.e., coronavirus disease 2019) emergency period and the following 120 days. Among other things, debt collectors may not during this period

  • charge fees or apply a higher interest rate as a result of nonpayment,
  • commence or continue litigation to collect a debt,
  • enforce a security interest through a repossession or foreclosure,
  • report past due debt to a credit reporting agency,
  • seize assets, or
  • terminate utility service.

The bill also prohibits during this period a confession of judgment or similar agreement as a condition to a loan or extension of credit. (A confession of judgment is an agreement to a judgment of liability without notice and opportunity to be heard in court in the event of the default of a borrower.)

Congress
116

Number
HR - 6423

Introduced on
2020-03-31

# Amendments
0

Sponsors
+5

Cosponsors
+5

Variations and Revisions

3/31/2020

Status of Legislation

Bill Introduced
Introduced to House
House to Vote
Introduced to Senate
Senate to Vote

Purpose and Summary

This bill places restrictions on the collection of debt owed by a consumer, nonprofit organization, or small business during the COVID-19 (i.e., coronavirus disease 2019) emergency period and the following 120 days. Among other things, debt collectors may not during this period

  • charge fees or apply a higher interest rate as a result of nonpayment,
  • commence or continue litigation to collect a debt,
  • enforce a security interest through a repossession or foreclosure,
  • report past due debt to a credit reporting agency,
  • seize assets, or
  • terminate utility service.

The bill also prohibits during this period a confession of judgment or similar agreement as a condition to a loan or extension of credit. (A confession of judgment is an agreement to a judgment of liability without notice and opportunity to be heard in court in the event of the default of a borrower.)

Alternative Names
Official Title as IntroducedTo provide for a temporary debt collection moratorium during the COVID-19 emergency period, and for other purposes.

Policy Areas
Finance and Financial Sector

Potential Impact
Cardiovascular and respiratory health
Civil actions and liability
Consumer credit
Debt collection
Emergency medical services and trauma care
Infectious and parasitic diseases
Interest, dividends, interest rates
Small business
Social work, volunteer service, charitable organizations

Comments

Recent Activity

Latest Summary9/29/2020

This bill places restrictions on the collection of debt owed by a consumer, nonprofit organization, or small business during the COVID-19 (i.e., coronavirus disease 2019) emergency period and the following 120 days. Among other things, debt colle...


Latest Action3/31/2020
Referred to the House Committee on Financial Services.