Comprehensive Debt Collection Improvement Act

Comprehensive Debt Collection Improvement Act

This bill generally provides additional financial protections for consumers and places restrictions on debt collection activities.

Regarding additional consumer protections, the bill

• expands certain protections currently applicable to federally backed student loans to private student loans, including by requiring the discharge of a private student loan in the event of the borrower's death or total and permanent disability;
• prohibits a consumer reporting agency from adding any information related to a debt arising from a medically necessary procedure to a consumer credit report and places restrictions on the reporting of other types of medical debt; and
• applies certain consumer protections regarding debt collection to debt owed to a federal agency, states, debt buyers, and businesses engaged in nonjudicial foreclosures.

It also prohibits certain loan conditions that limit a borrower's opportunity to be heard in court in the event of default.

Additionally, the bill restricts debt collectors and debt collection practices by

• prohibiting a debt collector from representing to a service member that failure to cooperate with a debt collector will result in a reduction of rank or similar action, and
• limiting a debt collector's electronic communications with a debtor without the debtor's permission.

The Comprehensive Debt Collection Improvement Act, also known as Bill 117 hr 2547, is a piece of legislation currently being considered by the US Congress. The purpose of this bill is to make significant improvements to the debt collection process in the United States.

One key aspect of the Comprehensive Debt Collection Improvement Act is the establishment of new guidelines and regulations for debt collectors. These guidelines aim to protect consumers from abusive and harassing debt collection practices. The bill also includes provisions to ensure that debt collectors are held accountable for any violations of these guidelines.

Additionally, the Comprehensive Debt Collection Improvement Act seeks to improve transparency in the debt collection process. This includes requiring debt collectors to provide consumers with clear and accurate information about their debts, as well as their rights and options for resolving them. Furthermore, the bill includes measures to address issues related to medical debt collection, such as prohibiting the reporting of medical debt to credit bureaus until after a 180-day waiting period. This is intended to give consumers more time to resolve medical debts before they negatively impact their credit scores. Overall, the Comprehensive Debt Collection Improvement Act aims to create a fairer and more transparent debt collection system that protects consumers from abusive practices and ensures that they have the information and resources they need to effectively manage their debts.