Bill > SB233

This bill, known as the Fair Debt Buying Practices Act, establishes new standards for debt buyers, which are entities that regularly purchase charged-off consumer debt for collection purposes. It requires debt buyers to possess specific documentation before attempting to collect a debt, including proof of ownership, the original debt balance with an explanation of any post-charge-off fees, the date of default or last payment, details about the original creditor, and the names and addresses of all subsequent debt purchasers. Debt buyers must also have access to a contract or document evidencing the debtor's agreement to the debt and provide this information to consumers within 15 days of a written request. The bill also mandates that settlement agreements be in writing and that receipts or statements be provided for payments, and prohibits debt buyers from suing on debts for which the statute of limitations has expired. Furthermore, it outlines specific allegations that must be included in a complaint filed by a debt buyer and requires authenticated business records to support default judgments. The bill also introduces penalties for violations, including actual and statutory damages, and allows for dismissal of actions if a debt buyer fails to appear for trial. Finally, it amends existing laws related to wage garnishments and other civil procedures to align with these new debt buying regulations.