1. Short title
This Act may be cited as the “Small Business Fair Debt Collection Protection Act”.
Small Business Fair Debt Collection Protection Act
A BILL
To apply the Fair Debt Collection Practices Act to small business debt to the same extent as such Act applies to consumers, and for other purposes.
2. Fair debt collection practices for loans to small businesses
in section 803 (15 U.S.C. 1692a)—
by striking (5) and inserting the following:
“(5) The term debt means any obligation or alleged obligation to pay money arising out of a transaction, whether or not such obligation has been reduced to judgment.”
by adding at the end the following:
“(9) The term commercial credit bureau means any person that—
“(A) for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating commercial credit information or other information on businesses for the purpose of furnishing consumer reports to third parties; and
“(B) uses any means or facility of interstate commerce for the purpose of preparing or furnishing consumer reports.
“(10) The term consumer reports has the meaning given the term in section 603 of this Act.”
by inserting after section 818 the following:
“818A. Application to small business debt
“(a) Definition—The term small business debt—
“(1) means any nonequity obligation or alleged obligation of a partnership, corporation, trust, estate, cooperative, association, government or governmental subdivision or agency, or other entity that is less than $5,000,000; and
“(2) does not include any obligation or alleged obligation—
“(A) of an individual; or
“(B) that is primarily for personal, family, or household purposes.
“(b) Application—This Act shall apply to small business debt to the same extent as this Act applies to debt.”
Clerical amendment— The table of contents for the Fair Debt Collection Practices Act is amended by inserting after the item relating to section 818 the following:
in section 805(b), by inserting “or a commercial credit bureau (as applicable)” after “consumer reporting agency”;
in section 806(3)—
by striking “consumers who” and inserting “consumers or small businesses that”; and
by inserting “ or to a commercial credit bureau (as applicable),” after “consumer reporting agency”; and
in section 807(16), by inserting “or a commercial credit bureau” after “this Act”.