The Debt Collection Outbreak: Recommendations for Idaho in Response to COVID-19

Abstract

The coronavirus outbreak has generated not only a public health crisis, but an economic crisis as well. In an attempt to curb the spread of the virus, countries have implemented various public health measures, such as stay-at-home orders, social distancing, and temporary closure of non-essential businesses. These measures, along with various other factors stemming from the virus, have resulted in economic hardship for businesses, households, and individuals. As a result, governments across the globe have had to grapple with how to provide their citizens and businesses with resources and financial protection. More specifically, governments have had to balance creditor and debtor interests in implementing restrictions on debt collections throughout the pandemic.

With the goal of providing specific recommendations for Idaho, this paper analyzes the various federal and state government measures taken in response to the COVID-19 pandemic with respect to debt collection. This paper discusses COVID-19’s impacts on debtors and creditors; reviews the usual debt collection rights available to creditors when debtors default; summarizes the current federal responses to COVID-19’s impacts on debtors and creditors; including the gaps therein; examines states’ various responses to COVID-19’s impacts on debtors and creditors, including state legislation, regulation, executive orders, and court orders; and discusses Idaho’s limited responses to-date. Finally, drawing from the preceding sections, this paper recommends future additional Idaho-specific responses to COVID-19’s continuing impacts on debtors and creditors, with specific recommendations for Idaho’s governor, attorney general, supreme court, and legislature.

Keywords: debtor-creditor relations, COVID-19, coronavirus, debt collection, CARES Act, FFCRA Act, Idaho