Comprehensive Debt Collection Improvement Act (H.R. 2547)

Columbia Collection supports the improvement to agencies who continually abuse consumers by engaging in unfair and deceptive practices. However, as businesses who do not practice this tactic, we must recognize community lenders, hospitals, and other providers throughout the country face unprecedented challenges as a result of COVID-19 already. Part of the process of attempting to recover outstanding payments, collection agencies are an extension of every community’s businesses.

Columbia Collection works with businesses and providers, large and small, to obtain payment for the goods and services received by consumers with empathy and an understanding of the strain as a result of COVID-19.  Columbia understands the basic economic reality that losses from uncollected debts result in higher prices and restricted access to services and credit. The collections process plays a critical role in a healthy credit ecosystem. Lenders rely on the ability to collect to be able to lend to consumers of all means with diverse financial backgrounds. In a world without a collections process, consumers’ ability to obtain credit cards or other unsecured credit could be limited and, in certain instances, a consumer may only have the option to pay cash. What a disadvantage this could cause to low-income consumers, especially those with limited options for services and credit, should the Comprehensive Debt Collection Improvement Act (H.R. 2547) pass the Senate.

In addition, concerns surrounding this bill pertaining to the delaying collection of medical debt for a two-year period beginning on the date that the first payment with respect to such medical debt is due. Delaying the ability to collect medical debt for two years could negatively impact medical providers throughout the country, many of whom have been on the front lines of the pandemic for the past year. This legislation harms consumers by delaying, but NOT stopping, the need to pay a legally owed debt and could have a serious impact on certain parts of the economy and could harm the ability to provide medical care in the U.S. during this critical time in the country.  Consumer often are unaware of options they have to handle medical debt, agencies can provide this education and information to assist, however delaying contact with a patient for potentially two years could limit a consumers options.

Columbia Collection will continue to monitor and report the outcome of Comprehensive Debt Collection Improvement Act (H.R. 2547).   Stay tuned.