Bill > H1694

This bill provides comprehensive legal protections for victims of economic abuse by establishing a new chapter of Massachusetts law (Chapter 258G) that allows individuals who have been financially exploited to dispute and potentially eliminate debts incurred through abusive circumstances. The bill defines economic abuse broadly, including debts incurred through identity theft, fraud, duress, intimidation, coercion, or non-consensual use of personal information within the context of domestic, family, or caretaker abuse. Under the proposed law, a debtor can submit a "Statement of Debt incurred through Economic Abuse" with adequate documentation from qualified third parties like law enforcement, healthcare providers, or domestic violence advocates, which then requires creditors to immediately cease collection efforts, stop lawsuits, return payments, and remove negative credit reporting. Creditors are given the option to challenge the claim in court, but they bear the burden of proving the debt was not incurred through economic abuse. The bill also establishes civil remedies, allowing victims to potentially hold perpetrators financially responsible and providing court protections like sealed records and remote hearings. Creditors who fail to comply with the law can face significant financial penalties, including actual damages, additional damages up to $5,000 for individual cases, and potential punitive damages. The law is set to take effect on January 1, 2026, and applies to lawsuits filed in Massachusetts, regardless of contract provisions selecting another state's laws.

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https://malegislature.gov/Bills/194/H1694