Dean Bill Promoting Fair Debt Collection for Vets Moves Forward with Unanimous Support

Submitted Photo

U.S. Rep. Madeleine Dean, left, and PA Attorney

General Josh Shapiro speak with veterans at a

Veteran's Day service in Abington.

Blogger's Note: The following was provided by the office of U.S. Rep. Madeleine Dean.

The Fair Debt Collection Practices for Servicemembers Act (H.R. 5003), sponsored by U.S. Rep. Madeleine Dean D-4th Dist.,  passed out of the Financial Services Committee with unanimous support on Nov. 13. 

This legislation addresses a variety of abusive debt collection practices targeting members of the military.

“The Financial Services Committee is taking a hard look at unscrupulous debt collection practices, and protecting our servicemembers is a top priority," said Dean. 

"This week's unanimous vote sends a clear signal - we will stand up to defend our servicemembers," said Dean.

According to the Consumer Financial Protection Bureau, (CFPB) servicemembers are subject to a variety of unfair debt collection practices:

• Contacting the servicemember’s chain of command in order to extract payment;
• Including a clause in the loan contract that the servicemember must grant the debt collector the authority to contact the chain of command;
• Threatening punishment through the Uniform Code of Military Justice, threatening to have the servicemember’s rank reduced, or threatening to have security clearances revoked.

Nearly forty percent of complaints filed by servicemembers with the CFPB concern debt collection, and servicemembers were more likely to face debt collection challenges than all other consumers.