Bill > S735

This bill establishes the Debt Collection Fairness Act, which provides comprehensive protections for consumers facing debt collection. The legislation limits wage garnishment to ensure consumers retain at least 90% of their weekly earnings or an amount based on minimum wage, and allows consumers to seek additional exemptions if they can demonstrate undue financial hardship. The bill also restricts the statute of limitations on consumer debt collection to 5 years for initiating legal action, prevents debt collectors from reviving expired debts through minimal payments, and prohibits imprisonment for failure to pay consumer debts. Furthermore, the act caps post-judgment interest rates at 12% (reducing to 3% after January 1, 2025) and limits attorney's fees to 15% of the debt amount. The bill protects employees from adverse employment actions related to garnishments and prevents creditors from bringing legal action on time-barred debts. Violations of the act are considered violations of consumer protection laws, and any contract provisions that conflict with the bill's provisions are deemed void and unenforceable. The legislation will take effect on January 1, 2025, with some specific provisions applying to future actions and payments.

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https://malegislature.gov/Bills/194/S735