Covid-19 Fraud Prevention Act

Floor Speech

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Mr. CLEAVER. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 2959) to establish the Consumer and Investor Fraud Working Group to help protect consumers and investors from fraud during the COVID-19 pandemic, to assist consumers and investors affected by such fraud, and for other purposes, as amended.

The Clerk read the title of the bill.

The text of the bill is as follows: H.R. 2959

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE.

This Act may be cited as the ``COVID-19 Fraud Prevention Act''. SEC. 2. CONSUMER AND INVESTOR FRAUD WORKING GROUP.

(a) Establishment.--Not later than the end of the 30-day period beginning on the date of enactment of this Act, the Director of the Bureau of Consumer Financial Protection and the Securities and Exchange Commission shall, jointly, establish a working group to be known as the ``Consumer and Investor Fraud Working Group'' (the ``Working Group'').

(b) Duties.--The Working Group shall facilitate collaboration between the Bureau of Consumer Financial Protection and the Securities and Exchange Commission on--

(1) providing resources to consumers and investors to avoid fraud during the COVID-19 pandemic;

(2) providing resources, including information on the availability of legal aid resources, to consumers and investors who have been adversely impacted by such fraud; and

(3) such other topics as the Working Group determines appropriate.

(c) Coordination With Other Agencies.--In carrying out the duties described under subsection (b), the Working Group shall coordinate and collaborate with other Federal and State government agencies, as appropriate.

(d) Quarterly Report.--The Working Group shall issue a quarterly report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate on the progress of the Working Group and summarizing--

(1) the resources made publicly available to consumers by the Working Group;

(2) any public enforcement action taken jointly or individually by any member of the Working Group;

(3) the number and description of consumer complaints received by the Bureau of Consumer Financial Protection and the Securities and Exchange Commission regarding fraud related to the COVID-19 pandemic; and

(4) any other actions of the Working Group.

(e) Sunset.--This section shall cease to have any force or effect on and after December 31, 2022. SEC. 3. DETERMINATION OF BUDGETARY EFFECTS.

The budgetary effects of this Act, for the purpose of complying with the Statutory Pay-As-You-Go Act of 2010, shall be determined by reference to the latest statement titled ``Budgetary Effects of PAYGO Legislation'' for this Act, submitted for printing in the Congressional Record by the Chairman of the House Budget Committee, provided that such statement has been submitted prior to the vote on passage.

Mr. Speaker, I would like to thank Representative Axne for her leadership on H.R. 2959, the COVID-19 Fraud Prevention Act.

This bill would create a joint Consumer Financial Protection Bureau and the Securities and Exchange Commission fraud working group to better protect consumers and investors against fraudulent schemes during and after the COVID-19 pandemic.

In the wake of the pandemic outbreak in the United States last year, millions of American families lost work and struggled to keep food on the table, pay their bills, and a roof over their heads. As early as April 2020, the Bureau of Labor Statistics reported that more than 20 million workers had lost their jobs.

As consumers across the country struggled with their finances and to stay protected against infection, predatory scammers and unscrupulous actors have profited from consumers' concerns and anxiety.

Scams targeting consumers' economic stimulus payments and unemployment benefits have delayed or prevented consumers from receiving the resources that they desperately need.

At the Subcommittee on Consumer Protection and Financial Institutions hearing held in March entitled ``Slipping Through the Cracks: Policy Options to Help America's Consumers During the Pandemic,'' Carla Sanchez-Adams, managing attorney with the Texas RioGrande Legal Aid, shared the story of a client she called Ms. Y, who lost her job because of the pandemic, fell ill from COVID-19, and became a victim of fraud.

Ms. Sanchez-Adams said: ``Ms. Y qualified for unemployment benefits through the Texas Workforce Commission. Ms. Y does not have a bank account, so her only option to receive her unemployment benefits was to have the funds deposited on a prepaid card . . . '' The Texas Workforce Commission ``disbursed $6,000 in unemployment benefits through the'' card. ``Soon after receiving her card, Ms. Y got COVID-19 and had to be hospitalized. When she was released, she tried to access the funds . . . and discovered there was'' not one single penny left. ``When she called . . . to inquire about the problem, she was told that someone had called, requested a new card be issued to an address in Michigan, and that someone in Michigan had used all the funds.''

Ms. Y is, unfortunately, not alone in experiencing this kind of shameless profiteering during a national crisis. Representative Axne's bill would help ensure that consumers who have been impacted by fraud can report it and have access to legal resources to combat it. It would also provide coordination between the CFPB and the SEC to combat these fraudulent schemes.

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Mr. CLEAVER. Madam Speaker, I have no further speakers and am prepared to close.

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Mr. CLEAVER. Madam Speaker, I yield myself the balance of my time to close.

Madam Speaker, the COVID-19 Fraud Prevention Act led by Representative Axne would provide essential resources and support for consumers and investors to protect them against fraudulent schemes that have been rampant during this tragic pandemic.

The House passed this unanimously by voice vote in September of 2020. I urge my colleagues on both sides of the aisle to join me again in supporting this legislation.

Madam Speaker, I yield back the balance of my time.

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