Bill > S629

This bill aims to establish the Debt Collection Fairness Act to provide greater protections for consumers against certain debt collection practices. The key provisions are: 1. It exempts a portion of a consumer's weekly earnings from garnishment to satisfy a judgment for a consumer debt, and limits the amount that can be garnished from the remaining earnings. It also allows consumers to claim additional exemptions due to financial hardship. 2. It establishes a 4-year statute of limitations for the collection of consumer debts, and prohibits creditors from bringing lawsuits to collect debts after this period has expired. 3. It requires creditors to provide written notice to consumers before initiating supplementary proceedings, and prohibits the issuance of warrants to compel consumers to appear in court for such proceedings unless specific conditions are met. 4. It limits the interest rate that can be charged on judgments for consumer debts to 2% per annum, and caps attorney's fees that can be recovered by prevailing creditors. 5. It provides that violations of the Act's provisions are also violations of the Massachusetts consumer protection law, Chapter 93A. The bill also includes transitional provisions and an effective date of January 1, 2024.

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https://malegislature.gov/Bills/193/S629