Fair Debt Collection Practices for Servicemembers Act
Fair Debt Collection Practices for Servicemembers Act would amend the Fair Debt Collection Practices Act (FDCPA) to grant stronger protections against harassment by debt collectors for people linked to military service. The bill creates a category of “covered individuals” that includes service members, their dependents, certain recently separated personnel (within 365 days), and members of the Selected Reserve. It bars debt collectors from threatening outcomes tied to military status—such as reducing rank, revoking security clearances, or prosecuting under the Uniform Code of Military Justice (UCMJ)—in connection with debt collections. The act also prohibits representations that noncooperation will lead to these consequences, while allowing collectors to provide accurate information about a debt (amount, status, or consequences of nonpayment) as long as doing so complies with the new prohibitions. In addition, the Comptroller General would study how the legislation affects timely information delivery, military readiness, and national security (including potential impacts on people with security clearances from uncollected debt). The bill was introduced in the Senate on July 24, 2025, by Senator Warnock with Senators Budd and Cornyn as co-sponsors.
Key Points
- 1Defines “covered individuals” to include active-duty service members, their dependents, recently separated personnel (within 365 days), dependents of those individuals, and members of the Selected Reserve.
- 2Prohibits debt collectors from threats related to military status, specifically: reducing rank, revoking security clearances, or prosecuting a covered individual under the UCMJ.
- 3Adds a rule of construction clarifying that debt collectors may provide accurate and lawful debt information about a covered individual as long as it does not violate the new prohibitions.
- 4Expands the FDCPA’s unfair practices provisions to include prohibiting threats that noncooperation will lead to rank reduction, security clearance revocation, or UCMJ prosecution.
- 5Requires a GAO study to evaluate the act’s impact on timely information delivery, military readiness, and national security, including effects on those with security clearances when debts remain unpaid.