Effects on Revenues and Direct Spending of H.R. 2547, the Comprehensive Debt Collection Improvement Act
Cost Estimate
As reported by the House Committee on Financial Services on
April 30, 2021, Including a Manager’s Amendment (Waters 9) as posted on the website of the House Committee on Rules on May 11, 2021
H.R. 2547 would, among other things, impose several new restrictions on private debt collection. Specifically, title VI would require federal agencies to wait 90 days after a delinquency or default to turn over debt to a private collection agency (PCA). Title VI also would require PCAs that collect debt on behalf of the federal government to comply with all applicable provisions of the Fair Debt Collection Practices Act (FDCPA). In addition, under the bill amounts charged by those debt collectors may not exceed 10 percent of the amount collected. Finally, the bill would increase remittances by the Federal Reserve. CBO estimates that enacting H.R. 2547 as amended would increase net revenues by roughly $2.6 billion and increase direct spending by a similar amount over the 2021-2031 period.
