Bill > H0385

This bill establishes new protections and remedies for victims of "coerced debt," which is defined as debt incurred due to domestic abuse, human trafficking, or the abuse, neglect, or exploitation of a vulnerable adult, where the perpetrator used the victim's personal information without consent or employed force, intimidation, or deception. The bill prohibits creditors from enforcing coerced debt against a debtor and requires creditors to investigate claims of coerced debt within a specified timeframe, ceasing collection activities while doing so. It also mandates that credit reporting agencies reinvestigate disputed debts if a consumer provides evidence of coerced debt, such as a court order or a statement from a qualified third-party professional, and remove such debts from credit reports if found to be coerced. Furthermore, the bill provides financial institutions (covered entities) with the authority to delay or refuse transactions if they reasonably suspect financial exploitation of a customer, offering them immunity for good-faith actions taken to prevent such exploitation, and requires reporting on suspicious transaction holds and the utilization of coerced debt protections.

Business and Industry, Justice

https://legislature.vermont.gov/bill/status/2026/H.385