H.R. 6423

This bill places restrictions on the collection of debt owed by a consumer, nonprofit organization, or small business during the COVID-19 (i.e., coronavirus disease 2019) emergency period and the following 120 days. Among other things, debt collectors may not during this period

• charge fees or apply a higher interest rate as a result of nonpayment,
• commence or continue litigation to collect a debt,
• enforce a security interest through a repossession or foreclosure,
• report past due debt to a credit reporting agency,
• seize assets, or
• terminate utility service.

The bill also prohibits during this period a confession of judgment or similar agreement as a condition to a loan or extension of credit. (A confession of judgment is an agreement to a judgment of liability without notice and opportunity to be heard in court in the event of the default of a borrower.)