Bill > S2638

This bill proposes the "Debt Collection Fairness Act" to provide several protections for consumers with regards to debt collection. The key provisions include: 1. Exempting 90% of a consumer's gross weekly wages or 65 times the minimum wage from garnishment to collect consumer debt, with the option for the consumer to claim additional hardship exemptions. 2. Establishing a 5-year statute of limitations for the collection of consumer debt, and prohibiting the revival or extension of the statute of limitations through partial payments. 3. Requiring at least 30 days' notice before a supplementary proceeding or payment review hearing, and prohibiting the issuance of warrants to compel a consumer's attendance without evidence of proper notice. 4. Limiting interest rates on consumer debt judgments to 12% per year, and lowering the rate to 3% for judgments entered or renewed after January 1, 2025. 5. Limiting attorney's fees that can be collected on consumer debt to 15% of the debt amount, unless a reasonable fee is calculated based on the work performed. The bill also provides that violations of these provisions will be deemed violations of the state's consumer protection law.

Budget and Finance

Joint Committee on Financial Services (Joint)

https://malegislature.gov/Bills/193/S2638