Predatory debt collectors would be barred from collecting any more money from the federal government’s Paycheck Protection Program under recently proposed U.S. legislation, the Washington Post reported. Rep. Suzanne Bonamici (D-Ore.) and Rep. Marie Newman (D-Ill.) introduced the measure last week, arguing that during the pandemic, abusive collectors had harassed consumers and that such firms should not be eligible for the federal relief. Their proposal would block firms that have violated federal debt collection laws from receiving the forgivable loans. The $670 billion Paycheck Protection Program offers forgivable loans of up to $10 million to small businesses. From its beginning, disputes have arisen about whether certain businesses should be eligible for the money. Many debt collection firms have thrived during the pandemic and consumer advocates question whether the operations of these firms should be subsidized by the federal government, especially during an economic downturn. According to a Washington Post analysis earlier this year, more than 1,700 debt-collection agencies and related businesses borrowed from the program, totaling more than $520 million in loans. Some of the recipients have been sanctioned previously for harassment or other abusive tactics.
