Speaker Nancy Pelosi yesterday unveiled a $3 trillion stimulus package that would give individuals the right to obtain a forbearance on any debt simply by asking for it, while also providing debt collectors with the opportunity to obtain “long-term, low-cost” loans to cover any losses caused by the forbearances.
A copy of the 1,800-page bill, called The Health and Economic Recovery Omnibus Emergency Solutions (Heroes) Act, can be accessed by clicking here.
“This is an historic challenge and a momentous opportunity for us to meet the needs of the American people,” said Pelosi, according to a published report. “The Heroes Act focuses on three pillars: opening our economy safely and soon, honoring our heroes and then putting much-needed money into the pockets of the American people.”
The House is expected to vote on the bill this Friday. Published reports made it seem as though there was not bipartisan support for the bill, either in the House of Representatives or the Senate, which could mean the bill does not have a great chance at becoming law.
Rep. Kevin McCarthy, the top Republican in the House, tweeted that the bill was “an 1,800-page liberal wish list that was crafted behind closed doors and includes bailouts for blue states and giveaways for billionaires.”
Among the other provisions of the bill are:
- Prohibiting the collection of any debt through garnishment or seizure of any kind
- Prohibiting the disconnection of any utility service, including electricity, water, gas, telecommunication, or broadband, for non-payment
- Prohibiting the addition of fees or interest on any debt that is not paid during the covered period of the bill
- Allowing individuals to repay any debt that was placed in forbearance over time
- Requiring the government to make payments on all private student loans through September 2021
To protect collectors that might be losing revenue as a result of the forbearance program, the Federal Reserve would be instructed to create a credit facility that would make “long-term, low-cost loans to debt collectors” to compensate them for documented losses caused by that forbearance.