Comprehensive Debt Collection Improvement Act

Floor Speech

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Mr. CLEAVER. Madam Speaker, let me, first of all, thank Chairwoman Waters for including my legislation, my Debt Collection Improvement Act, into the Stop Debt Collection Abuse Act, which would, among other things, extend the protections in the Fair Debt Collection Practices Act to debt owed to a Federal, State, territory, District of Columbia, and local government agency, and limit the excessive fees that debt collectors may charge.

The Fair Debt Collection Practices Act was enacted in 1978 to eliminate abusive debt collection practices by debt collectors and to ensure that those debt collectors who refrain from using abusive debt collection practices were not competitively disadvantaged.

Congress has found abundant evidence of the use of abusive, deceptive, and unfair debt collection practices by many debt collectors, and Congress expressly found that abusive debt collection practices contribute to social ills. Those findings are still true today.

Unfortunately, when Congress enacted the Fair Debt Collection Practices Act in 1978, it did not apply the law to debt collectors hired by Federal Government entities. As one witness before the Financial Services Committee pointed out, extending the Fair Debt Collection Practices Act to debt collectors hired by government entities is important because collection by or on behalf of the government is already unusually coercive as a result of the government's immense and unrivaled police power and other means of seizing citizens' assets.

This title within the bill also ensures that fees from debt collectors working on behalf of the Federal Government cannot be unreasonable, and requires the GAO to conduct a study into the use of third-party debt collectors by State and local governments. This title within the bill is supported by more than 20 civil rights organizations and consumer rights groups across the Nation.

The Comprehensive Debt Collection Improvement Act before us is a timely piece of legislation. America's hardworking families, small businesses, and students deserve to be treated with respect, integrity, and fairness, including those who owe debt to the Federal Government.

Americans currently find themselves in greater debt than at any other time in history, including prior to the great financial crisis of 2008. The debt burden stands at approximately $14.56 trillion and includes all types of consumer secured and unsecured loans.

No American should have to deal with abusive, predatory practices from debt collectors, especially when those debt collectors have been hired by the United States Federal Government.

This bill strengthens consumer protections by rectifying loopholes in existing Federal law that enables private companies hired by the Federal Government to unnecessarily harass individuals.

If Congress is going to set up fair debt collection practices to hold the private sector accountable, the Federal agency collecting a debt from consumers should be held to the same standard.

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