To amend title 38, United States Code, to direct the Secretary of Veterans Affairs to provide timely equitable relief to an individual who suffers a loss based on an administrative error by the Secretary, and for other purposes.

Summary

Requires the Department of Veterans Affairs to provide equitable relief within 120 days after it determines a veteran’s indebtedness was assessed in error, and to promptly cancel any agreement with a debt collector to collect that indebtedness. The change directs the VA to act on erroneous debt findings on a fixed timeline and to stop third-party collection when an error is identified.

• Mandates VA provide equitable relief within 120 days after finding an indebtedness was assessed in error.
• Requires prompt cancellation of VA agreements with debt collectors for debts later found to be erroneous.
• Applies to debt collectors as defined by 15 U.S.C. § 1692a.
• Does not change how indebtedness is determined—addresses timelines and post-determination actions.
• Creates an enforceable deadline for VA actions but does not include new funding.
• Aims to protect veterans from ongoing collection on debts that the VA reverses.
• Imposes additional administrative duties on VA personnel to meet the 120-day requirement.
• May reduce third-party collections on reversed debts and require contract adjustments with collectors.