Veteran Debt Fairness Act of 2019

This bill limits the authority of the Department of Veterans Affairs (VA) to recover overpayments of benefits from veterans. Among other requirements, the VA must update its information technology systems to allow for expedited notification when a veteran incurs a debt via participation in a VA benefits program.

The VA may only deduct the amount of debt of any veteran who is in debt because of participation in a VA benefits program from future benefit payments if the debt is the result of the following:

• failure to report correct, required information to the VA by the veteran (or other party such as a spouse);
• fraud or misrepresentation perpetrated by the veteran (or other party);
• a reduction in or termination of pursuit of a program of education, in the case of a recipient of educational assistance; or
• failure to complete a service agreement, in the case of the transfer of education assistance.

Additionally, the bill requires the VA to prescribe an administrative process for the dispute of the existence or amount of debt.

The bill also prohibits the VA from recovering certain debt that is more than five years old or withholding more than 25% of certain benefit payments.

Finally, the bill prescribes procedures by which the VA and debt collectors shall correct errors submitted to consumer reporting agencies.