“It is unconscionable that predatory debt collectors have abused the Paycheck Protection Program – taking funds that are intended to help small businesses stay afloat during the COVID-19 pandemic,” Heinrich said. “It’s time to put an end to this abuse, and keep these dollars flowing to small businesses that need them most.” The Ceasing Underserved Relief Benefits for Debt Collectors Act – or CURB Debt Collectors Act–would prevent debt collectors that have committed violations of the Fair Debt Collection Practices Act from accessing PPP forgivable loans. Debt collectors, including firms that are known to have violated consumers’ rights, have received millions of dollars in PPP funding.
“The Paycheck Protection Program was created as a lifeline for America’s small businesses. Help should go to those who need it most – not to unscrupulous companies that harass and intimidate consumers and small business owners to make a profit,” Luján said. “I am proud to cosponsor this legislation to ensure federal relief goes to those who need and deserve it and not those who want to game the system.” The legislation also was introduced in the U.S. House of Representatives by U.S. Representatives Marie Newman (D-Ill.) and Suzanne Bonamici (D-Ore.), and is co-sponsored by U.S. Representatives Jerry Nadler (D-N.Y.), Earl Blumenauer (D-Ore.), Steve Cohen (D-Tenn.), Jim Cooper (D-Tenn.), Jesús “Chuy” García (D-Ill.), Jahana Hayes (D-Conn.), Mark Takano (D-Calif.), and Nikema Williams (D-Ga.).
“I am grateful for Senator Heinrich and his leadership in advancing this critical legislation to protect consumers; all federal and state leaders must work together to ensure that New Mexican families have economic security,” New Mexico Attorney General Hector Balderas said. Read the full text of the bill here.
During the pandemic, many small businesses have faced challenges trying to access relief programs, and consumers have struggled with unfair tactics by abusive collectors. The CURB Debt Collectors Act can help business owners and consumers by making sure relief dollars go to local entrepreneurs instead of to unscrupulous collection agencies. This bill would prevent federal forgivable loan dollars from going to predatory debt collectors that go after New Mexicans. “The goal of the Paycheck Protection Program was to help small businesses stay afloat, not pad the pockets of predatory debt collectors exploiting struggling Americans during this crisis. Our bill would ensure the program helps those Congress intended to help,” said Wyden, Chairman of the Senate Finance Committee.
News Highlights Business
- Heinrich, Luján, Wyden introduce bill to end abuse of paycheck protection program by predatory debt collectors
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