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.