S. 2454 — Fair Debt Collection Practices for Servicemembers Act

This section amends the Fair Debt Collection Practices Act (FDCPA) to prohibit debt collectors from threatening covered servicemembers and certain dependents with (1) reduction in rank, (2) revocation of security clearance, or (3) prosecution under the Uniform Code of Military Justice (UCMJ), chapter 47 of title 10, U.S. Code, in connection with debt collection. Covered individuals include (A) covered members of the armed forces and their dependents (as defined in 10 U.S.C. §987(i)), (B) servicemembers separated, discharged, or released from active duty within the prior 365 days and certain of their dependents (as described in 10 U.S.C. §1072(2)), and (C) members of the Selected Reserve of the Ready Reserve (i.e., trained reserve units and designated individual reservists approved for contingency plans, as defined in 10 U.S.C. §10143). It further deems such representations about the consequences of non-cooperation with debt collectors an unfair practice and clarifies that the prohibitions do not restrict providing accurate, lawful debt information.

This section directs the Comptroller General of the United States to conduct a study and submit a report to Congress on the impact of this Act and its amendments on (1) the timely delivery of information to a covered individual, (2) military readiness, and (3) national security, including the extent to which covered individuals with security clearances would be impacted by uncollected debt. In this section, the term *covered individual* has the meaning given the term in subsection (e) of section 805 of the Fair Debt Collection Practices Act (15 U.S.C. 1692c), as added by this Act.