summary
Introduced
02/18/2025
02/18/2025
In Committee
05/19/2025
05/19/2025
Crossed Over
04/28/2025
04/28/2025
Passed
06/03/2025
06/03/2025
Dead
Signed/Enacted/Adopted
06/03/2025
06/03/2025
Introduced Session
Potential new amendment
83rd Legislature (2025)
Bill Summary
AN ACT relating to debt; establishing coerced debt as an affirmative defense in certain civil actions to collect an unsecured consumer debt; setting forth requirements for asserting the affirmative defense of coerced debt; requiring a court to take certain actions upon finding that a debt is a coerced debt; authorizing certain claims and remedies; revising provisions governing the presumption of intent to defraud in the issuance of certain instruments; and providing other matters properly relating thereto.
AI Summary
This bill establishes a new legal mechanism for protecting individuals who have incurred unsecured consumer debt through coercion, specifically in cases involving sex trafficking or domestic violence. The bill defines "coerced debt" as an unsecured consumer debt incurred through fraud, duress, intimidation, threat of force, or undue influence by a spouse, former spouse, co-parent, relative, cohabitant, or dating partner. To assert this defense, a debtor must submit a written attestation to the court detailing the specific debt, circumstances of coercion, and supporting documentation like police reports, Federal Trade Commission identity theft reports, or protection orders. If the court finds the debt is indeed coerced, it must order the creditor to stop collection efforts and potentially correct credit reports. The bill also allows the creditor to pursue the party responsible for coercing the debt and permits the debtor to recover attorney's fees and costs from that person. Additionally, the bill modifies existing law regarding presumptions of intent to defraud by clarifying that credit instruments presented within two years of issuance are considered presented in the usual course of business. The provisions of this bill will become effective on October 1, 2025, providing a new legal protection for victims of coerced debt.
Committee Categories
Business and Industry
Sponsors (8)
Heather Goulding (D)*,
Natha Anderson (D),
Tanya Flanagan (D),
Linda Hunt (D),
Lisa Krasner (R),
Selena La Rue Hatch (D),
Duy Nguyen (D),
John Steinbeck (R),
Last Action
Chapter 238. (on 06/03/2025)
Official Document
bill text
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bill summary
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bill summary
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