Comprehensive Debt Collection Improvement Act

Floor Speech

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I urge my colleagues to oppose H.R. 2547.

This bill is misguided. It will not improve debt collection or credit reporting but will instead harm consumers and small businesses.

This bill would make extending credit more expensive for everyone, especially lower-income borrowers with thin or no credit files and who need it the most.

This bill is yet another giveaway to progressives who want to eliminate the core foundation of our credit market and financial system.

I urge my colleagues to vote ``no'' on H.R. 2547, and I yield back the balance of my time.

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Mrs. WAGNER. I claim the time in opposition, and I am opposed to this en bloc.

Mr. Speaker, there is no doubt that people are hurting. There is no doubt that many Americans continue to feel the weight of the pandemic in their daily lives. Yet Republicans know that preventing individuals and businesses from being paid for services rendered will not help those individuals and families who need it the most.

This bill will not benefit consumers or businesses, particularly those small businesses that are the backbone of our economy. In fact, if enacted, this bill and the amendments will drive up the cost for all borrowers and will make credit less accessible to the borrowers who need it the most. Many of these amendments were not even considered during markup, and could result in unintended consequences and conflict with existing law and regulations.

For example, this en bloc makes it harder to collect on payment for services. It creates more confusion. This en bloc requires duplicative actions and is in conflict with current CFPB rules. This results in consumers receiving varying and inconsistent information. It also imposes specific requirements on the process and content of legal actions--some in direct conflict with existing laws and court procedures.

All of these have potential consequences and deserve to be debated through regular order, not in the 11th hour on the floor.

Mr. Speaker, this en bloc continues the Democrats' goal of bringing all student loan borrowers under the Federal student loan portfolio, this time under the guise of COVID relief. In expanding the Federal student loan profile, this en bloc fails to address the underlying issues related to the Federal student loan debt crisis, which was already exacerbated by the Democrats' goal of nationalizing student lending in 2010.

This en bloc fails to recognize the success of the private student loan market. Approximately 98 percent of student loans are repaid in the private market.

This en bloc continues to ignore the work that the CFPB did when it finalized its debt collection rule last fall. This final rule reflects more than 7 years of research and analysis, and clarifies the allowable uses of modern communication technology.

This en bloc prohibits debt collectors from contacting consumers by email or text message without explicit prior consent from the consumer. Under this amendment, social media messages are also prohibited. This approach ignores the fact that the final rule allows consumers to opt out of specific means of communications used by debt collectors.

Republicans believe that consumers should be able to communicate about their payment options privately and using the methods that they want to communicate.

This is yet another example of Democrats attempting to hamstring the ability to modernize the regulatory framework to account for modern technology and consumer preference.

Finally, this en bloc requires the CFPB to produce a prescriptive report on the debt collection process. The CFPB, in consultation with the FTC, already issues an annual oversight report on debt collection, which includes data on consumer complaints and enforcement actions.

The point is, constraining debt collection will undermine the underwriting system and increase risk to the financial system. This ultimately makes extending credit more expensive for all borrowers and may exclude the lowest income borrowers entirely.

There are commonsense ways to update and improve the process for debt collection and credit reporting.

Republicans believe that consumers who owe a debt should be treated with respect and dignity and are not subjected to abusive or harassing behaviors. While there are commonsense ways to update and improve the debt collection process, the law already upholds this notion.

Mr. Speaker, this en bloc is another partisan wish list of progressive policies in search of a problem. I urge my colleagues to oppose this en bloc.

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Mrs. WAGNER. Mr. Speaker, I continue to reserve the balance of my time.

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Mrs. WAGNER. Mr. Speaker, I continue to reserve the balance of my time.
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Mrs. WAGNER. Mr. Speaker, I continue to reserve the balance of my time.
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Mrs. WAGNER.

Mr. Speaker, this en bloc will not improve debt collection or credit reporting, but will instead harm consumers and small businesses. It will make extending credit more expensive for everyone, especially lower income borrowers with thin or no credit files and who need it the most.

The intent is clear, the Democrats want to eliminate the core foundation of our credit market and financial system.

Mr. Speaker, I urge my colleagues to vote ``no'' on this en bloc, and I yield back the balance of my time.

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Mrs. WAGNER. Mr. Speaker, on that I demand the yeas and nays.

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Mrs. WAGNER. I am not opposed to this en bloc.

Mr. Speaker, these amendments will ensure that we know the true consequences of this bill before it is enacted into law. These amendments direct the Treasury Department and the GAO to separately study the impacts this bill will have on low-to-moderate income, minority, or thin-or no-credit-file consumers.

Payment for services rendered is a fundamental premise of our free market system. Republicans understand this concept and work hard to ensure legislation does not cut off access to credit or price large swaths of Americans out of the consumer credit market.

Moreover, we should not be limiting small businesses' ability to collect payments at any time, but especially when they are already hurting from the pandemic-related shutdowns.

The point is, constraining debt collection will undermine the underwriting system and increase risk to the financial system. This ultimately makes extending credit more expensive for all borrowers, and may exclude the lowest income borrowers entirely.

There is bipartisan consensus that a consumer who owes a debt should be treated with respect and dignity and not be subjected to abusive or harassing behavior. The law already upholds this notion.

Mr. Speaker, I urge my colleagues to support this en bloc, and I reserve the balance of my time.

Mr. Speaker, this en bloc will ensure that we know the true consequences of this bill before it becomes effective. Payment for services rendered is a fundamental premise of our credit-based free market system.

Republicans want to ensure legislation passed by this House will not limit access to credit, price large swaths of Americans out of the consumer credit market, or restrict small businesses' ability to collect payments for services provided.

Mr. Speaker, I urge my colleagues to support this en bloc, and I yield back the balance of my time.

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Mrs. WAGNER. Mr. Speaker, on that I demand the yeas and nays.

Mr. Speaker, since taking the majority in the House last Congress, Democrats have attempted to undermine the financial system through a partisan wish list that is focused on one thing: undermining the pillars of our financial system. Now with one party dominating, they are jamming through a bill that will not only hurt the very borrowers they claim they are trying to help, but it will bring down our credit markets.

There is no doubt that individuals and families are hurting. There is no doubt that the pandemic brought on additional challenges. But undermining our financial system is not the way to help Americans.

Our financial system needs strong underwriting practices to keep it strong and reduce risk when extending credit. This is what makes credit more available at a lower cost to more borrowers. This is not to say that the system is perfect. Republicans agree there are some improvements that can be made to the way the system operates.

The gentleman's amendment would replace the underlying bill with several targeted approaches to improve the debt collection and credit reporting framework.

First, this amendment requires the inclusion of a clear disclosure when a confession of judgment, or COJ, is part of a business lending contract. It also requires lenders to obtain a written affidavit containing the date and nature of a borrower's default in order to execute a confession of judgment. This will help to ensure small businesses know the full terms and conditions of their agreement and help to crack down on reported misuse of COJs while allowing these important repayment tools to remain in use.

This amendment preserves the servicemember protection bill sponsored by the gentlewoman from Pennsylvania. In fact, I would remind my colleagues that we just passed this bill on suspension 3 weeks ago. We should focus on getting this bill enacted into law rather than packaging it up in a wish list of partisan policies.

This amendment would allow the estate of a deceased or permanently disabled student loan borrower to request a discharge of the student loan debt. This change would codify the current practice used by private lenders to ensure that student loan borrowers are indeed protected.

This amendment would also address concerns with medical debt. It would eliminate the inclusion of paid, medically necessary, nonelective medical debt in credit reports. This provision is a responsible way to address the challenges that many face in repaying medical debt. At the same time, it does not make healthcare more expensive or services less available.

Finally, this amendment acknowledges the work of the CFPB. What my colleagues won't tell you is that the final debt collection rule was the culmination of more than 7 years of research and analysis. It clarified the allowable uses of modern communication technology.

This amendment, unlike the underlying bill, is a commonsense approach to improve the consumer experience in debt collection and credit reporting. It will strengthen our financial system while increasing options and choices for consumers when they owe debt.

I hope my colleagues on the other side of the aisle will recognize this effort to make improvements that will benefit consumers and small businesses.

Mr. Speaker, I urge support for the ranking member's amendment, and I reserve the balance of my time.

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Mrs. WAGNER. Mr. Speaker, I continue to reserve the balance of my time.

Mr. Speaker, this amendment replaces the underlying bill with targeted approaches to improve the debt collection and credit reporting framework. This amendment preserves options for consumers and ensures that small businesses are paid for services that they provide. This amendment will ensure our financial system remains safe and sound.

Mr. Speaker, I urge my colleagues to vote ``yes'' on this amendment, and I yield back the balance of my time.

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Mrs. WAGNER. Mr. Speaker, on that I demand the yeas and nays.

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