In the formal release of the “Heroes Act” stimulus Package, Congress slipped in elements of the Waters Bill including a moratorium on repossessions, collections, foreclosures and a number of additional collections activity. These elements were conspicuously absent on the first released “Title-By-Title Summary” and were seen by most, myself included as being a sign that they had recognized this as a poison pill with no chance of passing.
While the Senate has already dismissed the bill as excessive in it’s first version and may have been privy to this draft, it is interesting that these massive moratoriums on the collections and recovery cycles had been omitted from the initial release. It is unknown if these were last minute additions or were purposefully omitted.
Read the New Full Congressional Bill Here!
Read the Originally Released Title-By-Title Summary for Comparison Here!
Below are some highlights of it;
- Pages 1037-1039 – Amends the FDCPA
(2) CREDITOR.—The term ‘creditor’ means any person— ‘‘(A) who offers or extends credit creating a debt or to whom a debt is owed; or ‘‘(B) to whom any obligation for payment is owed.
‘‘(3) DEBT.—The term ‘debt’ ‘‘(A) means any obligation or alleged obligation that is or during the covered period becomes past due, other than an obligation arising out of a credit agreement entered into after the effective date of this section, that arises out of a transaction with a consumer; and
‘‘(b) PROHIBITIONS.— ‘‘(1) IN GENERAL.—Notwithstanding any other provision of law, no debt collector may, during a covered period— ‘‘(A) enforce a security interest securing a debt through repossession, limitation of use, or foreclosure; ‘‘(B) take or threaten to take any action to deprive an individual of their liberty as a result of nonpayment of or nonappearance at any hearing relating to an obligation owed by a consumer;
‘‘(B) does not include a mortgage loan.
- Page 961 – ‘‘SEC. 4024. TEMPORARY MORATORIUM ON EVICTION FILINGS.
- Page 965 – (2) AUTOMATIC FORBEARANCE FOR DELINQUENT BORROWERS.—Section 4022(c) of the CARES Act (15 U.S.C. 9056(c)), as amended by paragraph (5) of this subsection, is further amended by adding at the end the following:
- Page 965 – ‘‘(9) AUTOMATIC FORBEARANCE FOR DELINQUENT BORROWERS.— 2 ‘‘(A) IN GENERAL.—Notwithstanding any other law governing forbearance relief—‘‘(i) any borrower whose covered mort-5 gage loan became 60 days delinquent between March 13, 2020, and the date of enactment of this paragraph, and who hasnot already received a forbearance undersubsection (b), shall automatically be granted a 60-day forbearance that begins on the date of enactment of this paragraph, provided that a borrower shall not be considered delinquent for purposes of this paragraph while making timely payments or otherwise performing under a trial modification or other loss mitigation agreement; and
- Page 971 – ‘‘(3) REPOSSESSION MORATORIUM.—In the case of personal property, including any recreational or motor vehicle, used as a dwelling, no person may use any judicial or non-judicial procedure to repossess or otherwise take possession of such property for six months after date of enactment of this paragraph.’’
- Page 1056 – ‘‘(C) collect any debt, by way of garnishment, attachment, assignment, deduction, off-set, or other seizure, from—
CUCollector apologizes for allowing to be drawn into the misrepresentation of the original “Title-By-Title Summary.”
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