Bonamici, Foster, Cohen Introduce Bill to Protect Consumers from Predatory Debt Collectors

WASHINGTON, DC [05/01/2024] – Representatives Suzanne Bonamici (D-OR), Bill Foster (D-IL), and Steve Cohen (D-TN) introduced legislation to crack down on predatory debt collectors.

The Securing Consumers Against Misrepresented (SCAM) Debt Act will empower consumers with the information they need to protect themselves from debt collectors that use misleading allegations to convince people to pay debts they do not legally owe. The bill also establishes specific requirements debt collectors must meet before they can take legal action. Debt collection and evictions continue to dominate state civil courts, according to research from Pew Charitable Trusts. The SCAM Debt Act would give consumers the tools they need to protect themselves, including a requirement that the debt collector provide the consumer with verifiable evidence of the debt and advanced notice of any lawsuit to collect the debt.

“People targeted by predatory debt collectors are often struggling, cannot pay the amounts demanded, and do not deserve the stress of being harassed by aggressive debt collectors,” said Congresswoman Suzanne Bonamici. “It’s even more outrageous that predatory debt collectors try to collect debts that consumers no longer owe. The SCAM Debt Act will equip consumers with information to recognize predatory debt collectors and their tactics while holding accountable collectors that use unscrupulous practices. I appreciate partnering with Representatives Foster and Cohen on this important consumer protection legislation."

"Predatory debt collection is a problem for families across the country, and consumers deserve to be protected from it," said Congressman Bill Foster. "This legislation would crack down on debt collection scams and hold debt collectors accountable for using misleading or unreliable information to intimidate consumers. I'm proud to join Rep. Bonamici and Rep. Cohen to introduce this common sense legislation to protect consumers."

“Debt collectors often use predatory tactics that undermine consumers' rights, using misleading, confusing or outdated information,” said Congressman Steve Cohen. “These predatory debt collection tactics affect communities and families in Memphis and across our country. The SCAM Debt Act will make sure that consumers have access to the information they need to exercise their rights while requiring debt collectors to present verifiable evidence for the fair collection of legitimate debts. I'm pleased to be working again with Representatives Bonamici and Foster on this important legislation.”

The full text of the SCAM Debt Act can be found here, a section-by-section is available here, and a summary is available here.

"At Oregon Consumer Justice, we applaud this legislative effort to enhance transparency and accountability in debt collection by reintroducing the SCAM Debt Act,” said Oregon Consumer Justice Executive Director Jagjit Nagra. “Through our own statewide research, we know that more than one in four Oregonians has had a debt collector attempt to collect payment from them that wasn't theirs. By demanding that debt collectors operate with verified information and clear communication, the SCAM Debt Act directly supports our efforts to protect consumers from fraudulent claims and predatory collectors."

In addition to Bonamici, Cohen, and Foster, the bill is cosponsored by Reps. Judy Chu (D-CA), Jim McGovern (D-MA), and Eleanor Holmes Norton (D-DC). In addition to Oregon Consumer Justice, the SCAM Debt Act is endorsed by National Consumer Law Center (on behalf of their low-income clients), Consumer Federation of America, National Legal Aid and Defender Association, Public Citizen, Americans for Financial Reform, Consumer Action, and Oregon Consumer Justice.

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