The proposed bill, titled the "Debt Collection Fairness Act," aims to enhance consumer protections in debt collection practices in Massachusetts. It introduces a new chapter, Chapter 93M, which defines key terms related to debt collection, such as "consumer debt," "debt collector," and "garnishment." The bill establishes exemptions for consumers' earnings from garnishment, allowing a certain percentage of wages to be protected from attachment to satisfy consumer debt judgments. Additionally, it provides a mechanism for consumers to claim undue financial hardship to seek further exemptions and prohibits employers from taking adverse actions against employees due to garnishments.

The bill also sets a five-year statute of limitations for initiating actions to collect consumer debts and outlines specific procedures for notifying consumers prior to supplementary processes in civil actions. It limits interest rates on judgments for consumer debts and establishes that any violation of the new provisions constitutes a violation of existing consumer protection laws. Furthermore, the bill clarifies that certain existing laws regarding earnings attachment do not apply to consumer debts as defined in the new chapter. The act is set to take effect on January 1, 2026.

Statutes affected:
Bill Text: 246-28