This bill strengthens protections for active-duty military members, veterans, and their dependents against abusive debt collection practices. Specifically, it amends the Fair Debt Collection Practices Act to prohibit debt collectors from threatening to reduce a servicemember's rank, revoke their security clearance, or pursue prosecution under military law as a tactic to collect debts. The bill applies to active duty members, those who separated or were discharged within the past year, and members of reserve components. The legislation clarifies that debt collectors can still provide accurate information about what is owed and consequences of nonpayment, as long as they don't cross into these prohibited threats. Additionally, the bill requires the Government Accountability Office to study how these new protections affect the timeliness of debt collection communications, military readiness, and national security.
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