Voting 215 for and 207 against, the House on May 13 passed a bill (HR 2547) that would prohibit abusive practices by private firms that collect debt from consumers, student-loan borrowers and others seriously in arrears.
The bill would require a two-year grace period before efforts to collect medical debt from seriously ill individuals could begin.
It would allow co-signers as well as borrowers of private student loans to discharge their debt on the basis of total and permanent disability, just as seriously disabled borrowers of federal student loans and their co-signers can do. The bill also would:
• limit fees to 10% of collections in the case of companies hired by federal agencies to collect debt;
• increase monetary damages imposed by the 1977 Fair Debt Collection Practices Act on companies using unfair and deceptive practices;
A yes vote was to send the bill to the Senate. To read more click here