Stopping Harm and Implementing Enhanced Lead-time for Debts for Veterans Act of 2020 or the SHIELD for Veterans Act of 2020

This bill updates debt collection and overpayment processes related to Department of Veterans Affairs (VA) benefits or programs.

Specifically, the bill prohibits the incursion of debt arising from programs or benefits administered by the VA if the amount is owed for any overpayment that was caused by the amount of time taken by the VA to process information provided by or on behalf of an individual.

If the VA makes an overpayment to an individual, it must provide such individual with notice of the overpayment and an explanation of the individual's right to (1) dispute the overpayment, and (2) request a waiver of indebtedness. In addition, the VA may not take any collection action regarding an overpayment until 90 days after it issues such notice.

The VA must report on its plan for the improvement of the notification and communication processes for individuals who receive overpayments from the VA.

The bill prohibits interest and administrative cost charges on delinquent payments of debt resulting from a person's participation in a VA disability compensation program, pension program, or an educational assistance program.

The VA must establish a minimum debt threshold for when it will report to a consumer reporting agency in relation to a claim or debt arising from receipt of a VA benefit.

The bill extends the window to request relief from the recovery of debt arising from a person's participation in a VA benefit or program from 180 days to 1 year.

The bill requires the VA to prescribe an administrative process for the dispute of the existence or amount of debt. The VA is prohibited from deducting any amount of an individual's debt if the cost of recovery would exceed the amount to be recovered.

The VA must ensure its website and written notices contain all information veterans need regarding how to dispute an indebtedness.

Finally, the VA must ensure that a veteran may remove any dependent from an award of compensation or pension using the VA's system.

Veteran Debt Fairness Act of 2019

This bill limits the authority of the Department of Veterans Affairs (VA) to recover overpayments of benefits from veterans. Among other requirements, the VA must update its information technology systems to allow for expedited notification when a veteran incurs a debt via participation in a VA benefits program.

The VA may only deduct the amount of debt of any veteran who is in debt because of participation in a VA benefits program from future benefit payments if the debt is the result of the following:

• failure to report correct, required information to the VA by the veteran (or other party such as a spouse);
• fraud or misrepresentation perpetrated by the veteran (or other party);
• a reduction in or termination of pursuit of a program of education, in the case of a recipient of educational assistance; or
• failure to complete a service agreement, in the case of the transfer of education assistance.

Additionally, the bill requires the VA to prescribe an administrative process for the dispute of the existence or amount of debt.

The bill also prohibits the VA from recovering certain debt that is more than five years old or withholding more than 25% of certain benefit payments.

Finally, the bill prescribes procedures by which the VA and debt collectors shall correct errors submitted to consumer reporting agencies.