Bill > S1147

This bill provides comprehensive legal protections for victims of economic abuse by creating a new legal framework that allows individuals to dispute debts incurred through coercive, manipulative, or non-consensual means. The legislation defines economic abuse broadly, including scenarios where a debt is incurred through identity theft, fraud, duress, intimidation, threat, force, coercion, manipulation, or unauthorized use of personal information within the context of abuse by family members, household members, or caretakers. Under the bill, a debtor can submit a "Statement of Debt incurred through Economic Abuse" to a creditor, supported by adequate documentation from qualified third parties like law enforcement, healthcare providers, or domestic violence advocates. Upon receiving such a statement, creditors must immediately cease collection efforts, notify consumer reporting agencies, return any payments made, and potentially dismiss existing collection lawsuits. The bill places the burden on creditors to prove that a debt was not incurred through economic abuse and provides potential financial penalties for non-compliance, including damages up to $5,000 for individual cases and up to $500,000 for class action lawsuits. Importantly, the bill ensures that victims cannot be forced to waive these rights and requires all communications and notices to be provided in both English and Spanish, with provisions for other languages. The act is set to take effect on January 1, 2026, giving businesses and legal systems time to prepare for implementation.

Budget and Finance, Justice

https://malegislature.gov/Bills/194/S1147