D.C. Council Votes Unanimously to Pass Emergency Bill Updating District’s Outdated Debt Collection Law
Yesterday, the D.C. Council voted unanimously to pass new emergency debt collection legislation — introduced by Chairman Mendelson and DC Attorney General Racine — implementing much-needed updates to the District’s debt collection law to protect DC consumers.
Among other changes, the Protecting Consumers from Unjust Debt Collection Practices Emergency Amendment Act of 2021 updates and strengthens the District’s existing law by:
- Expanding its scope to apply broadly to consumer debts, including finally applying to credit card debt and medical debt (the law was initially drafted fifty years ago and had become largely obsolete, failing to cover most modern-day forms of consumer debt)
- Protecting broadly against unfairness and harassment of consumers in the debt collection process, both in and out of court
- Requiring collectors to have adequate information and documentation to substantiate the debts they collect
- Creating a universal three-year statute of limitations for all covered debts, and protecting consumers from the harms of “zombie” debt collection (revival of old debt obligations)
- Building in enforcement mechanisms like a private right of action, and subjecting debt collectors’ lawsuits to dismissal for failure to comply