Bill > H1275

This bill establishes the Debt Collection Fairness Act, which provides significant protections for consumers in debt collection processes. The legislation limits wage garnishment to protect workers by allowing consumers to keep at least 90% of their gross weekly wages or an amount equivalent to 65 times the minimum wage, and enables consumers to seek additional wage exemptions if they can demonstrate undue financial hardship. The bill also introduces a 5-year statute of limitations for consumer debt collection, preventing creditors from pursuing legal action after this period, and explicitly prohibits imprisoning someone for failing to pay consumer debt. Additionally, the bill caps post-judgment interest rates at 12% currently and will reduce this to 3% for judgments entered after January 1, 2026, and limits attorney's fees to no more than 15% of the debt amount. The legislation provides strong consumer protections by preventing employers from taking adverse employment actions due to garnishments and ensuring that any contract provisions violating these protections are void. These regulations apply to consumer debts primarily for personal, family, or household purposes and aim to prevent predatory debt collection practices while providing clear guidelines for creditors and debt collectors.

Business and Industry

https://malegislature.gov/Bills/194/H1275