Substitute Senate Bill No. 123, known as Public Act No. 24-77, addresses the issue of "coerced debt," which is defined as unsecured credit card debt incurred by a victim of domestic violence through duress, intimidation, or undue influence. The bill establishes that causing someone to incur coerced debt is a civil offense, and the perpetrator can be held liable for the debt and possibly for the victim's legal costs. It sets forth a process for debtors to claim a debt as coerced, requiring them to provide certified information and documentation to the claimant (creditor) to prove the circumstances of the debt's incurrence. Upon receiving such a claim, the creditor must suspend all collection activities and review the claim, during which time they cannot take legal action or report negative information to credit agencies.

The bill mandates a 60-day suspension of collection efforts, or longer if the investigation requires it, and outlines the steps a creditor must take if they determine the debt was coerced, including ceasing collection and notifying credit agencies to remove negative information. If the debt is found not to be coerced, collection activities can resume after the debtor is notified. The bill also includes provisions that toll the statute of limitations during the review period, limits debtors from claiming coercion for the same debt multiple times, and clarifies that it does not mandate refunds for coerced payments, affect the rights of creditors to recover from the coercer, or impact other legal rights or defenses. The bill was approved on May 30, 2024, and does not specify any insertions or deletions from current law.