Sec. 3. Repayment period and forbearance for consumers
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/bill/116/hr/7796/ih/section-3A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 812A of the Fair Debt Collection Practices Act ( 15 U.S.C. 1692 et seq.), as added by section 2, is amended— by inserting after subsection
(c)the following: After the expiration of a covered period, a debt collector shall comply with the following: For any debt arising from credit with a defined term, the debt collector shall extend the time period to repay any past due balance of the debt by— 1 payment period for each payment that a consumer missed during the covered period, with the payments due in the same amounts and at the same intervals as the pre-existing payment schedule; and 1 payment period in addition to the payment periods described under subparagraph (A). For debt arising from an open end credit plan, as defined in section 103 of the Truth in Lending Act ( 15 U.S.C. 1602 ), the debt collector shall allow the consumer to repay the past-due balance in a manner that does not exceed the amounts permitted by the methods described in section 171(c) of the Truth in Lending Act ( 15 U.S.C. 1666i–1(c) ) and regulations promulgated under that section. For debt not described under paragraph
(2)or (3), the debt collector shall— allow the consumer to repay the past-due balance of the debt in substantially equal payments over time; and provide the consumer with— for past due balances of $2,000 or less, 12 months to repay, or such longer period as the debt collector may allow; for past due balances between $2,001 and $5,000, 24 months to repay, or such longer period as the debt collector may allow; or for past due balances greater than $5,000, 36 months to repay, or such longer period as the debt collector may allow. The Director of the Bureau may issue rules to provide greater repayment protections to consumers with debts described under subparagraph (A). This paragraph shall not preempt any State law that provides for greater consumer protections than this paragraph. ; and by adding at the end the following: Each debt collector that makes use of the credit facility described in paragraph
(4)shall establish a forbearance program for debts available during the covered period. Under a forbearance program required under paragraph (1), upon the request of a consumer experiencing a financial hardship due, directly or indirectly, to COVID–19, the debt collector shall grant a forbearance on payment of debt for such time as needed until the end of the covered period, with no additional documentation required other than the borrower’s attestation to a financial hardship caused by COVID–19 and with no fees, penalties, or interest (beyond the amounts scheduled or calculated as if the borrower made all contractual payments on time and in full under the terms of the loan contract) charged to the borrower in connection with the forbearance. This subsection shall not apply to a mortgage loan subject to section 4022 or 4023 of the CARES Act. .
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- 15 USC 1666i–1(c)
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