The proposed bill, known as the Debt Collection Fairness Act, introduces significant amendments to the General Laws regarding consumer debt collection practices. It establishes definitions for key terms such as "consumer," "creditor," "debt collector," and "garnishment," and outlines protections for consumers whose earnings are subject to attachment for debt collection. Notably, it exempts a portion of consumers' earnings from garnishment, allows consumers to claim additional exemptions based on financial hardship, 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 limits interest rates on judgments related to consumer debts.

Additionally, the bill mandates that plaintiffs provide written notice to consumers before supplementary processes related to debt collection and prohibits imprisonment for failure to pay consumer debts. It establishes that any violation of the new provisions constitutes a violation of existing consumer protection laws. The act will take effect on January 1, 2026, and includes specific provisions regarding the applicability of its sections to existing consumer debts and contracts. Overall, the bill aims to enhance consumer protections in the debt collection process while ensuring fair practices for creditors and debt collectors.

Statutes affected:
Bill Text: 246-28