H.R. 7796

Consumer Relief during COVID-19 Act

This bill places restrictions on the collection of consumer debts during the COVID-19 (i.e., coronavirus disease 2019) emergency period and for 120 days after this period. Among other things, debt collectors may not during this period

• enforce a security interest through a repossession,
• seize assets,
• commence or continue an eviction,
• terminate utility service, or
• charge fees or apply a higher interest rate as a result of nonpayment.

After this period, debt collectors must provide certain repayment options including extending the repayment period for debts.

The bill also provides for forbearance programs established by creditors for consumers experiencing a financial hardship due to COVID-19. The Federal Reserve Board must establish a credit facility to make long-term, low-cost loans to these creditors for losses caused by any forbearance of payments.