Bill > H4316

This bill establishes the Debt Collection Fairness Act, which introduces comprehensive protections for consumers in debt collection proceedings. The legislation limits wage garnishment to no more than 90% of gross weekly wages or 65 times the minimum wage, allows consumers to seek additional exemptions for financial hardship, and prevents employers from taking adverse employment actions due to garnishments. The bill also restricts the statute of limitations for consumer debt collection to 5 years, preventing debt collectors from reviving old debts through minimal payments, and limits judgments to a 10-year renewal period. Additionally, the act caps interest rates on consumer debt judgments at 12% currently, reducing to 3% for judgments entered after January 1, 2026, and restricts attorney's fees to no more than 15% of the debt amount. The bill provides consumer protections by prohibiting imprisonment for failure to pay consumer debt, requiring written notice before supplementary legal proceedings, and ensuring that consumers have opportunities to demonstrate financial hardship. Importantly, violations of the act are considered violations of consumer protection laws, and any contract provisions that conflict with the act's provisions are deemed void and unenforceable. The legislation will take effect on January 1, 2026, with some provisions applying retroactively to payments made after the act's effective date.

Budget and Finance

Joint Committee on Financial Services (Joint)

https://malegislature.gov/Bills/194/H4316