Tomorrow, the House Financial Services Committee will hold a hearing entitled “Examining Legislation to Protect Consumers and Small Business Owners from Abusive Debt Collection Practices.” The Committee originally scheduled the meeting for June 25, 2019, but removed it from its calendar shortly before the meeting was to occur. Unlike the old announcement, the one for tomorrow’s meeting provides a memorandum with details, including a witness list.
The memorandum overviews the history of the federal policy of the Fair Debt Collection Practices Act (FDCPA). It discusses both the Consumer Financial Protection Bureau’s (CFPB) Notice of Proposed Rulemaking (NPRM) as well as the U.S. Supreme Court’s decision in Obduskey v. McCarthy—where the court found that the FDCPA does not apply to non-judicial foreclosure proceedings.
The memorandum also discusses the hardships faced by households struggling with debt. The memorandum addresses the large role that medical debt plays in consumers’ decision to file for bankruptcy and how student loans are burdening young adults, with a disproportionate impact on communities of color.
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