March 23, 2020

U.S. Rep. Lawson Introduces Bill to Ease Financial Burden on Families and Small Businesses During Coronavirus Epidemic

WASHINGTON DC –Today, Rep. Al Lawson (FL-05) introduced the Debt Collection Moratorium Act. This bill would suspend debt collection activity on personal loans, and loans to small businesses and non-profits during the coronavirus epidemic. 

“In light of the global coronavirus pandemic, and the economic hardship it will bring, my bill would suspend debt collections activity for 120 days to allow families and businesses an opportunity to get back on their feet,” Rep. Lawson said. “This would give working Americans, small business and non-profits another tool in the recovery process.”

Lawson’s bill would prevent creditors or debt collector from: 

  • Adding extra interest or fees during this period; 
  • Suing or threatening to sue a consumer, small business, or non-profit for a past-due debt;
  • Continue litigation to collect a debt initiated;
  • Placing a freeze on repossessions or foreclosures;
  • Reporting a past due debt to a consumer credit reporting agency;
  • Taking or threatening to take any action to enforce collection;
  • Initiating or continuing any action to cause the collection of a debt from wages or federal benefits by way of garnishment, deduction, offset, or other seizure;
  • Seeking collection of a debt by seizing funds from a bank account or any other assets for any reason other than child or spousal support; or
  • Freezing a utility prepaid or post-paid electricity, natural gas, telecommunications, broadband, water or sewer service.