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 exploitation of a vulnerable adult, where the perpetrator used the victim's personal information without consent or employed force, intimidation, or other coercive means. The bill outlines a process for debtors to notify creditors of coerced debt, requiring specific documentation such as law enforcement reports, court orders, or certifications from qualified professionals. Creditors must then investigate these claims within a set timeframe and cease collection activities if the debt is substantiated as coerced. The bill also amends existing laws to require credit reporting agencies to reinvestigate disputed debts identified as coerced and allows financial institutions (covered entities) to delay or refuse transactions if they reasonably suspect a customer is a victim of financial exploitation, providing immunity for good-faith actions. Finally, it mandates data collection and reporting on suspicious transaction holds and the utilization of coerced debt protections.