Bill > H4694

This bill, titled "Relative to Fairness in Debt Collection," proposes several key provisions to protect consumers from unfair debt collection practices. The bill establishes that a consumer's earnings up to 70 times the federal or state minimum wage per week are exempt from garnishment to collect a consumer debt. It also limits the amount of a consumer's excess earnings that can be garnished to 10%. The bill sets a 4-year statute of limitations for collecting consumer debt and prohibits debt collectors from initiating legal action after the limitations period has expired. Additionally, it requires creditors to provide 30-day written notice before initiating supplementary proceedings and prohibits the issuance of warrants to compel a consumer's attendance at such proceedings. The bill also caps the interest rate on consumer debt judgments at 6% per annum and limits the attorney's fees that can be collected. Finally, the bill states that violations of these provisions will be considered violations of the state's consumer protection law.

Budget and Finance

Joint Committee on Financial Services (J)

https://malegislature.gov/Bills/191/H4694