H.R. 5013, dubbed the The Small Business Fair Debt Collection Protection Act, was approved by the House Financial Services Committee last week. The bill aims to apply the Fair Debt Collection Practices Act to small businesses to the same extent as it applies to consumers. Additionally, it would require the CFPB to redefine “small businesses” in such a way that consumer protections would apply.
The bill passed through Committee by a vote of 31-23. The bill’s sponsors are Rep. Alfred Lawson Jr (D) and Rep. Emmanuel Cleaver (D).
A related bill, H.R. 3490, The Small Business Lending Fairness Act, also passed by the same margin. This bill aims to restrict the use of Confessions of Judgment from commercial finance transactions in all 50 states.