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 debtor's personal information without consent or employed force, intimidation, or deception. The bill prohibits creditors from collecting on coerced debt and requires them 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 debtor provides evidence of coerced debt, such as a law enforcement report or court order, and remove such debts from credit reports if found to be coerced. Furthermore, the bill introduces provisions for financial institutions to delay or refuse transactions if they reasonably suspect a customer is a victim of financial exploitation, providing immunity to institutions acting in good faith. Finally, it requires the Commissioner of Financial Regulation to study the implementation of these new protections and report findings to the legislature.