Bill > S146

This bill, titled the "Family Financial Protection Act," aims to enhance consumer protections related to financial matters by establishing new regulations and amending existing laws. Key provisions include defining terms like "consumer," "consumer debt," and "debt buyer" to clarify who and what the act applies to. It introduces significant protections for consumer earnings, exempting a substantial portion from garnishment (legal seizure to satisfy a debt) and limiting the percentage that can be garnished, with specific rules for different income levels and priority of multiple garnishment orders. These protections apply to individuals employed in Massachusetts, regardless of their employer's location. The bill also clarifies that these earnings protections do not apply to child support or alimony orders, which will follow federal guidelines. Furthermore, it prohibits employers from retaliating against employees due to income withholding orders for consumer debts. The act imposes a strict three-year statute of limitations for initiating actions to collect consumer debts, meaning creditors generally have three years from specific events like charge-off or the last payment to sue, and this period cannot be extended by partial payments or affirmations of the debt, effectively extinguishing the right to collect after this time. It also limits actions on judgments for consumer debts to five years and prohibits imprisonment for debt related to consumer debt collection, except for criminal violations. Finally, the bill regulates interest rates on consumer debt judgments, capping them at a specific federal yield, and sets limits on attorney's fees that can be recovered by creditors, while ensuring debtors who prevail in collection actions are entitled to recover their attorney's fees.