WASHINGTON, D.C. — U.S. Representatives Madeleine Dean (PA-04) and Warren Davidson (OH-08) reintroduced the Fair Debt Collection Practices for Servicemembers Act (H.R. 10018), bipartisan legislation to address abusive debt collection practices affecting members of the military. Congresswoman Dean’s bill previously passed the House in the 116th Congress.
According to the Consumer Financial Protection Bureau’s Office of Servicemember Affairs, 13.8% of complaints filed by servicemembers concern debt collection — as compared to only 6.6% by non-servicemembers. Debt collectors threaten the rank and security clearances of U.S. troops. And unfortunately, debt collectors also target military spouses, unfairly burdening our military families.
“Our service members are the very best of us, sacrificing their very lives for our protection and freedom — they should not fear that their careers will be marred by manipulative debt collectors,” Rep. Dean said. “Our bipartisan bill is a commonsense measure to protect U.S. troops, and our military families, from unfair debt collection practices.”
“Debt collectors have no business attempting to interfere with the military’s chain of command,” Rep. Davidson said. “I’m proud to support this bill to protect service members by ensuring they cannot be coerced by false threats to their rank or security clearance.”
The Fair Debt Collection Practices for Servicemembers Act strengthens protections for servicemembers by prohibiting a debt collector from conveying any threats to a servicemember or commanding office:
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To have the servicemember’s rank reduced; or
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To have the servicemember’s security clearance revoked.
The bill also requires the Government Accountability Office to report the impact of this act on military readiness and national security, including the extent covered members with security clearances would be impacted by uncollected debt.
The Fair Debt Collection Practices for Servicemembers Act is endorsed by the Military Family Advisory Network and the National Military Family Association.
“Military families already navigate financial pressures unique to military life, including frequent moves, disruptions to spouse employment, and unexpected out-of-pocket costs. No servicemember, recently separated veteran, or military family member should face collection tactics that exploit their connection to military service by threatening rank, security clearance, or prosecution. MFAN is proud to support the Fair Debt Collection Practices for Servicemembers Act, which provides important protections for military families while recognizing that their financial well-being is directly connected to military readiness and national security,” Shannon Razsadin, CEO, Military Family Advisory Network said.
Read the full text of the bill here.
Rep. Madeleine Dean is a mother, grandmother, attorney, professor, former four-term member of the Pennsylvania House of Representatives, and U.S. Representative for the Fourth District of Pennsylvania.
