Congress closes debt-collection loophole: time-barred debts now off-limits
H.R. 2704 — Fair Debt Collection Improvement Act · Filed by Steve Cohen (D-TN) · Introduced Apr 8, 2025 · Referred to committee
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What it does
This bill amends the Fair Debt Collection Practices Act to explicitly prohibit debt collectors from collecting or attempting to collect debts after the statute of limitations has expired. Currently, debt collectors can pursue time-barred debts; this bill closes that loophole by making it illegal to do so, protecting consumers from collection attempts on old debts they may no longer legally owe.
Why we flagged it
The bill directly restricts a predatory debt-collection practice (pursuing time-barred claims) and strengthens consumer rights under existing consumer-protection law. It is a straightforward regulatory tightening with no offsetting carve-outs or industry giveaways.
What the text implies
- Debt collectors may respond by accelerating collection efforts before statutes of limitations expire, potentially increasing harassment of consumers in the final months before time-bar.
- The bill does not address whether debt collectors may still report time-barred debts to credit bureaus or use other non-collection tactics; those practices remain unregulated by this amendment.
- Effectiveness depends on enforcement by the CFPB and FTC; without active monitoring, debt collectors may continue illegal collection attempts and rely on consumer ignorance of their rights.
Section numbers refer to the bill text the analysis read — linked under Primary records below.
Who it affects
Consumers gain a clear legal shield against collection attempts on debts they can no longer be sued for, eliminating a predatory practice that exploits the gap between legal enforceability and collection tactics. Debt collectors retain the right to collect on valid, non-time-barred debts.
Named in the bill
Fair Debt Collection Practices Act (FDCPA), debt collectors, Consumer Financial Protection Bureau (CFPB), Federal Trade Commission (FTC)
Where it stands
- Apr 8, 2025 — Introduced · Congress.gov: “Introduced in House”
- Apr 8, 2025 — Referred to House Committee on Financial Services · Congress.gov: “Referred to the House Committee on Financial Services”
Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.
How this was measured
Analysis — Quorum's AI read the bill text published by Congress.gov (657 characters) on Jun 10, 2026. Section numbers in the findings refer to that text, linked below; transparency and hidden-provision scores are compared against the median of 16,222 analysed bills.
Status and sponsors — Congress.gov's bill record — actions, committee referrals and cosponsors — loaded nightly. The timeline shows status changes, not every procedural action.
As of — page rendered 2026-10-20.
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