Bill > S2537

This bill establishes the Debt Collection Fairness Act, which introduces comprehensive protections for consumers facing debt collection in Massachusetts. The legislation limits wage garnishment to ensure consumers retain at least 90% of their weekly earnings or an amount equivalent to 65 times the minimum wage, provides a mechanism for consumers to claim financial hardship exemptions, and restricts employers from taking adverse employment actions due to wage garnishments. The bill also establishes a 5-year statute of limitations for debt collection lawsuits, prevents debt collectors from reviving expired debts through minimal payments, and prohibits imprisonment for failure to pay consumer debts. Additionally, the act caps post-judgment interest rates at 12% currently and will reduce to 3% in 2026, limits attorney's fees to a maximum of 15% of the debt amount, and allows consumers to challenge debt collection practices under the state's consumer protection laws. The legislation defines key terms like "consumer debt" and "debt collector" and includes provisions to protect various types of income, such as child support payments and certain pension funds, from collection efforts. The act will take effect on January 1, 2026, with some provisions applying retroactively to payments made after its effective date.

Budget and Finance

Joint Committee on Financial Services (Joint)

https://malegislature.gov/Bills/194/S2537