Bill > S2713

This bill, the Debt Collection Fairness Act, aims to provide greater protections for consumers with outstanding debts. Key provisions include: 1. Exempting 90% of a consumer's gross weekly wages or 65 times the state/federal minimum wage from garnishment to collect a consumer debt judgment. Consumers can also claim additional exemptions for undue financial hardship. 2. Establishing a 5-year statute of limitations for collecting consumer debts, and prohibiting creditors from reviving or extending this period through partial payments. 3. Requiring 30-day advance notice before initiating supplementary proceedings to examine a consumer debtor, and prohibiting the use of warrants or imprisonment for failure to appear or pay consumer debts. 4. Capping interest rates on consumer debt judgments at 12% per year, and reducing the rate to 3% for judgments entered after January 1, 2025. 5. Limiting attorney's fees in consumer debt collections to 15% of the debt amount or a reasonable rate based on the time spent. The bill also specifies that violations of these provisions constitute violations of the state's consumer protection law, Chapter 93A.

Budget and Finance

Senate Committee on Ways and Means (Senate)

https://malegislature.gov/Bills/193/S2713