Bill > SB3188

This bill aims to increase fairness and protect consumers in debt collection by requiring debt collectors to provide more information and documentation when attempting to collect a consumer debt, especially when initiating a lawsuit. Specifically, debt collectors must now possess and provide details about the debt's origin, including the original creditor, account number, evidence of the consumer's liability like a signed contract or application, the date the debt was incurred, the last payment date and amount, and an itemized accounting of the total amount claimed, detailing principal, interest, fees, and who imposed them. If the debt has been reduced to a judgment, the collector must provide a copy of that judgment and proof of ownership. The bill also mandates that in the first written communication about a charged-off debt, consumers must be informed of their right to request this detailed information and provided with a clear notice outlining these rights, including contact information for the debt collector and a reminder about potential protections for certain income and property. Furthermore, when a debt collector files a lawsuit, they must attach supporting documentation to the complaint or statement of claim and include specific details about the debt, its ownership history, and verification that the suit is within the statute of limitations (the legal time limit for filing a lawsuit). The bill also requires debt collectors to make reasonable efforts to verify a debtor's current address before filing a lawsuit and clarifies that expired statutes of limitations cannot be extended by subsequent payments or affirmations of the debt. Finally, any legal action served on a debtor must include a clear "Notice of Lawsuit" explaining the legal process, potential consequences of not appearing in court, and resources for legal assistance, along with a "Claim Information Sheet" summarizing key details of the debt and lawsuit. The bill also amends existing definitions to clarify what constitutes an "original creditor," "consumer debt," and "debt collector," expanding the latter to include original creditors and debt buyers engaging in collection activities.

Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=3188&year=2026