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House Financial Services Committee Markup

House Financial Services Committee

Markup

Wednesday, November 13-Thursday, November 14, 2019

Bills Considered

Opening Statements

Chairwoman Maxine Waters (D-Calif.)

In her opening statement, Waters said it is the responsibility of Congress to ensure veterans receive the services and care they need after their service ends, noting the bills under consideration that would support veteran access to housing programs and ensure veterans are not harassed by predatory debt collectors. Waters highlighted that several other bills under consideration would increase protections for consumers and small businesses against unfair and predatory debt collection practices.

Ranking Member Patrick McHenry (R-N.C.)

In his opening statement, McHenry encouraged the Chair to consider Republican-led bills that will grow the economy, protect consumers, create jobs and support veterans, adding that the committee should work to ensure veterans benefit from the consumer protections they are entitled to under the law. McHenry said both sides of the aisle share the belief that no one should be intimidated or subjected to harassment or predatory lending practices, however individuals, small businesses, local and state governments as well as the federal government also have the right to be repaid for loans in a timely manner. McHenry called on the committee to attempt wholesale reform of the Fair Debt Collection Practices Act (FDCPA) in a bipartisan way rather than take a “rifle shot approach.”

H.R. 3490, the “Small Business Lending Fairness Act”

Rep. Nydia Velázquez (D-N.Y.) introduced her bill and her Amendment in the Nature of a Substitute, which would amend the Truth in Lending Act (TILA) to restrict the use of confessions of judgment for commercial loans to small business owners, saying lenders have used this instrument to win more than 32,000 judgements in state courts. Rep. Blaine Luetkemeyer (R-Mo.) spoke against the legislation, calling it overly broad.

Amendment Offered by Rep. Warren Davidson (R-Ohio)

Davidson introduced his substitute amendment, which would strike the underlying prohibition on confessions of judgement and instead require creditors to provide all borrowers with a clear disclosure explaining that the contract contains a confession of judgement provision. Velázquez spoke against the amendment. Luetkemeyer spoke in support of the amendment. The amendment was not agreed to by a vote of 23-31.

Amendment Offered by Rep. Ted Budd (R-N.C.)

Budd introduced his amendment, which would require lenders to obtain a written affidavit containing the date and nature of a borrower’s default in order to execute a confession of judgement, saying this will crack down on the misuse of confessions of judgement. Velázquez spoke against the amendment. Luetkemeyer spoke in support of the amendment. The amendment was not agreed to by a vote of 23-31.

The Amendment in the Nature of a Substitute was agreed to and the amended measure was reported favorably to the House by a vote of 31-23.

H.R. 3948, the “Debt Collection Practices Harmonization Act”

Rep. Gregory Meeks (D-N.Y.) introduced his bill and his Amendment in the Nature of a Substitute, which would expand the definition of debt covered under the FDCPA to include money owed to a state or local government, clarifying that private debt collectors who pursue debts are subject to the FDCPA. He said the bill ensures consumers benefit from FDCPA protections, calls for inflation adjustment for statutory damages, allows courts to award appropriate injunctive relief and limits the government’s ability to use third-party debt collectors regarding overpayment of Federal Emergency Management Agency (FEMA) assistance, except in cases of fraud or deceit, to consumers affected by national disasters. Rep. Bryan Steil (R-Wis.) spoke against the bill, saying that while he supports the underlying premise, the bill “takes a more extreme approach.”

The Amendment in the Nature of a Substitute was agreed to and the amended measure was reported favorably to the House by a vote of 31-23.

H.R. 4403, the “Stop Debt Collection Abuse Act”

Rep. Emanuel Cleaver (D-Mo.) introduced his bill and his Amendment in the Nature of a Substitute, which would extend the FDCPA’s protections as it relates to debt owed to a federal agency and limit the fees debt collectors can charge to protect consumers from “insidious” collection practices. The bill would also require a Government Accountability Office (GAO) study on the use of debt collectors by state and local government agencies. He said that according to the National Consumer Law Center, debt collectors contact consumers more than a billion times per year and 71 million Americans have a debt in collections reported in their credit file, saying this is “literally ripping apart people’s lives.” Rep. French Hill (R-Ark.) and McHenry spoke in favor of the bill.

Amendment Offered by Rep. Denver Riggleman (R-Va.)

Riggleman offered his amendment, which would extend consumer protections under the FDCPA to individuals indebted to state and local governments. Cleaver encouraged Riggleman to withdraw his amendment and work with Rep. Gregory Meeks (D-N.Y.) on his bill. Riggleman withdrew his amendment.

The Amendment in the Nature of a Substitute was agreed to and the amended measure was reported favorably to the House by a vote of 54-0.

H.R. 5021, the “Ending Debt Collection Harassment Act of 2019”

Rep. Ayanna Pressley (D-Mass.) introduced her bill and her Amendment in the Nature of a Substitute, which would amend FDCPA to prohibit a debt collector from contacting a consumer by email or text message without the consumer’s consent to be contacted electronically. She continued that it would also require the Consumer Financial Protection Bureau (CFPB) to analyze the impact of electronic communications utilized by debt collectors, as well as include in CFPB’s Semi-Annual Report to Congress an analysis of consumer complaints and a list of recent enforcement actions taken against debt collectors. Rep. Steve Stivers (R-Ohio) spoke against the bill, calling it a “clear attempt to undermine the CFPB’s new proposed rule to modernize debt collection,” which he said attempts to give debt collectors clear rules of the road about how they can utilize modern communications technology. Rep. Alma Adams (D-N.C.) spoke in support of the bill.

The Amendment in the Nature of a Substitute was agreed to and the amended measure was reported favorably to the House by a vote of 31-23.

H.R. 2398, to amend the United States Housing Act of 1937 and title 38, United States Code, to expand eligibility for the HUD–VASH program, to direct the Secretary of Veterans Affairs to submit annual reports to the Committees on Veterans’ Affairs of the Senate and House of Representatives regarding homeless veterans, and for other purposes.

Rep. Denny Heck (D-Wash.) introduced the bill, sponsored by Rep. Scott Peters (D-Calif.), and his Amendment in the Nature of a Substitute, which would expand eligibility for the Housing and Urban Development-Veterans Affairs Supportive Housing (HUD-VASH) program to homeless veterans who have received an “other than honorable” discharge. Reps. Al Lawson (D-Fla.), Joyce Beatty (D-Ohio), Cindy Axne (D-Iowa), David Scott (D-Ga.), Stivers, McHenry, Waters and Adams spoke in support of the bill. Davidson raised concerns about the bill, saying the committee should not focus on solving homelessness only for veterans, and the status of a veteran’s discharge is not under the jurisdiction of the committee.

Amendment Offered by Rep. Andy Barr (R-Ky.)

Barr introduced his amendment, which would prohibit the Secretary of Housing and Urban Development from requiring a housing facility comply with “housing first” policies as a condition of receiving rental assistance. Waters, Heck and Scott spoke against the amendment. Reps. Bill Huizenga (R-Mich.) and Hill spoke in favor of the amendment. The amendment was withdrawn.

The Amendment in the Nature of a Substitute was agreed to and the amended measure was reported favorably to the House by a vote of 54-0.

H.R. 5003, the “Fair Debt Collection Practices for Servicemembers Act”

Rep. Madeleine Dean (D-Pa.) introduced her bill and her Amendment in the Nature of a Substitute, which would amend the FDCPA to prohibit debt collectors from threatening a servicemember with reducing their rank, having their security clearance revoked, prosecuting them under the Uniform Code of Military Justice, or otherwise communicating with the commanding officer or any other senior officer in the chain of command to identify the location of a servicemember. McHenry said the bill had a good intention but expressed concerns about provisions regarding debt collectors contacting commanding officers. Waters and Davidson spoke in support of the bill.

Amendment Offered by Rep. Steve Stivers (R-Ohio)

Stivers introduced his amendment, which would require a GAO study on the bill’s impact on readiness and national security. Reps. Barry Loudermilk (R-Ga.) and Dean spoke in support of the amendment. The amendment was agreed to by a voice vote.

The Amendment in the Nature of a Substitute was agreed to and the amended measure was reported favorably to the House by a vote of 54-0.

H.R. 5001, the “Non-Judicial Foreclosure Debt Collection Clarification Act”

Rep. Lacy Clay (D-Mo.) introduced his bill and his Amendment in the Nature of a Substitute, which would reverse the recent Supreme Court decision in Obduskey v. McCarthy and Holthus LLP by amending FDCPA to clarify that entities in non-judicial foreclosure proceedings are covered by the FDCPA. McHenry spoke against the bill, calling it an attempt to overturn the Supreme Court’s opinion.

The Amendment in the Nature of a Substitute was agreed to and the amended measure was reported favorably to the House by a vote of 31-23.

H.R. 5013, the “Small Business Fair Debt Collection Protection Act”

Lawson introduced his bill and his Amendment in the Nature of a Substitute, which would expand FDCPA’s protections to cover small business loans. Luetkemeyer spoke against the bill, criticizing that the bill too greatly expands the authority of the CFPB. Scott and Velázquez spoke in support of the bill.

The Amendment in the Nature of a Substitute was agreed to and the amended measure was reported favorably to the House by a vote of 31-23.

For more information on this markup, please click here.