Al Lawson Brings Back Small Business Debt Collections Protection Bill

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we Rep. Al LawsonD-Fla., brought back his “Fair Debt Collections Protection for Small Businesses Actwhich he has championed in recent years.

The bill extends the protections under the Fair Debt Collection Practices Act (FDCPA) to small businesses with loans or obligations under $5 million so that debt collectors have more limits on what they can do to collect those debts.

“Currently, small business borrowers do not have the same protections as individual consumers under federal law,” Lawson’s office noted. “Small business owners often place their personal finances as capital to start and grow their business. Small business owners typically apply for credit using their personal credit, but they don’t have the same protections as individual consumers. By extending the protections that currently exist for consumers to small business owners, these businesses are more likely to succeed.

“These protections are particularly important for women and minority-owned small business owners, who are particularly vulnerable to predatory practices because they are less likely than other small business owners to have the capital resources and networks of support needed to protect against abusive collectors,” the congressman’s office said. added.

Lawson introduced the bill on Tuesday and weighed in on its proposal.

“This bill promotes entrepreneurship and allows small business owners to have consumer-equivalent protections when dealing with debt collectors,” Lawson said. “Small businesses are the backbone of our economy, and many are doing well, but in cases where they are slow to meet their obligations, they should be given the same level of grace as consumers.”

Lawson’s bill was sent to the United States House Financial Services Committee. So far, there is no follow-up action in the US Senate.

Kevin Derby
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