H.R.2704 - Fair Debt Collection Improvement Act (119th Congress)
Summary
H.R.2704, the Fair Debt Collection Improvement Act, aims to amend the Fair Debt Collection Practices Act (FDCPA) to protect consumers from debt collectors attempting to collect on debts for which the statute of limitations has expired. The bill prohibits debt collectors from collecting or attempting to collect such time-barred debts. This proposed legislation seeks to provide additional consumer protection within the realm of debt collection practices.
Expected Effects
If enacted, this bill would prevent debt collectors from pursuing collection on debts that are legally uncollectible due to the expiration of the statute of limitations. This would likely reduce harassment and legal threats against consumers related to old debts. It could also lead to a decrease in revenue for debt collection agencies.
Potential Benefits
- Prevents debt collectors from pursuing legally expired debts.
- Reduces harassment and legal threats against consumers.
- Provides clarity and strengthens consumer protection under the FDCPA.
- May reduce stress and financial burden on individuals and families.
- Could lead to more ethical debt collection practices.
Potential Disadvantages
- May slightly reduce the profitability of debt collection agencies.
- Could potentially lead to slightly higher interest rates or fees in the long run, as lenders attempt to compensate for reduced debt recovery.
- Might require additional resources for enforcement and oversight.
- Could incentivize debtors to delay debt repayment, hoping for the statute of limitations to expire.
- May create legal challenges in defining and proving when a debt is truly time-barred.
Constitutional Alignment
The bill aligns with the spirit of the Constitution by promoting the general welfare (Preamble) through consumer protection. Congress has the power to regulate commerce (Article I, Section 8), which includes debt collection practices. The bill does not appear to infringe upon any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).