S-3565 : Still Just a Bill

Small Business and Consumer Debt Collection Emergency Relief Act of 2020

This bill places restrictions on the collection of consumer and small business debts during a major disaster or emergency, including during the COVID-19 (i.e., coronavirus disease 2019) emergency period. Among other things, debt collectors may not during such a period

• enforce a security interest through a repossession or foreclosure,
• commence or continue litigation to collect a debt,
• terminate utility service,
• seize assets,
• commence or continue an eviction, or
• charge fees or apply a higher interest rate as a result of nonpayment.

After such a period, debt collectors must provide certain repayment options including extending the repayment period for debts.

Violations of these provisions are subject to civil enforcement.