Fair Debt Collection Practices for Servicemembers Act

This bill, S 2396, prohibits debt collectors from threatening servicemembers or their eligible dependents with rank reduction, security clearance revocation, or military prosecution (under the Uniform Code of Military Justice) when collecting debts. It directly affects active-duty service members, recent veterans (within 365 days of separation), and their dependents as defined in the bill. Key provisions amend the Fair Debt Collection Practices Act to ban these specific threats in debt collection communications and representations. The bill also requires a Government Accountability Office (GAO) study to assess its impact on military readiness, national security, and timely information delivery to covered members.