Bill > AB250

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.

Business and Industry

https://www.leg.state.nv.us/App/NELIS/REL/83rd2025/Bill/12280/Overview