In a move that might be seen as a sign of how the rest of 2020 is going to play out in the credit and collection industry, the Department of Veterans Affairs on Friday announced that it would continue its suspension of certain debt collection activities through the end of the year.
Veterans will continue to be able to either suspend making any payments on debts owed to the government or extend their repayment terms, according to a press release from the Veterans Affairs. Only debts that fall under the jurisdiction of the Treasury Department are eligible for suspension. Debts that are owed to the VA itself are still eligible to be collected.
“Veterans and their families should be focused on their health and safety during the pandemic,” said VA Secretary Robert Wilkie, in a statement. “VA is taking action to give those with pending debts greater flexibility during these challenging times.”
Under an order from President Trump, the VA stopped collecting on debts in April. Legislation has been introduced in Congress that would broaden the suspension of collection activities, adding in debts that are owed to the VA as well as the Treasury Department and extending the moratorium until after the coronavirus emergency declaration is lifted.
“Veterans across the country have been suffering from the severe economic consequences of this pandemic, and I am glad the VA is finally taking steps to provide some much needed relief,” said Rep. Chris Pappas [R-N.H.], who sponsored the legislation, in a statement. “Too many veterans face unexpected debt collection from VA, some due to overpayments that were through no fault of their own. I hope the VA continues to listen to our veterans and ensure they can get debt relief for the duration of this pandemic. I will continue working with VA and my colleagues to ensure that our veterans can focus on their physical and financial health during these trying times.”
