Rep. Omar Passes Amendment to Study Student Debt Collection Practices
May 14, 2021
WASHINGTON–Rep. Ilhan Omar (D-MN) sponsored an amendment that passed yesterday in the Comprehensive Debt Collection Act, the House’s holistic enhancement of debt collection practices bill. The amendment requires the Consumer Financial Protection Bureau (CFPB) to carry out a study and report to Congress on the consumer experiences of student loan borrowers facing debt collection. The study will help determine the extent of harmful actions from private student lenders and debt collectors.
“I am thrilled the House passed my amendment to study the harmful debt collection practices by private student lenders and student debt companies,” said Rep. Omar. “As someone with student debt, I understand how hard it can be to keep up with loan payments while paying for medicine, housing, and other basic necessities. Because many chose to get ahead by pursuing an education, they now face far-reaching economic consequences including impacts to their credit scores and ability to pursue home ownership. It is imperative we get updated information from the CFPB on the financial impacts of defaulted loans in order to adequately address the issues caused by this vicious cycle of debt. This amendment will bring us closer to helping millions of vulnerable Americans.”