The "Civil Relief from Coerced Debt Act" establishes new regulations regarding coerced debt, which is defined as debt incurred through identity theft, fraud, or various forms of coercion, including domestic abuse and human trafficking. The Act outlines specific duties for both debtors and creditors. Debtors are required to submit a written statement of coerced debt, which must include detailed information about the debt and supporting documentation, such as police reports or verification from qualified third parties. Creditors, in turn, must provide clear instructions for submitting such statements and are obligated to suspend collection efforts upon receiving a valid statement of coerced debt.

Additionally, the Act creates a right of action for debtors against creditors who fail to comply with its provisions, allowing for the recovery of damages, attorney fees, and potential punitive damages. It also mandates that all communications regarding coerced debt be provided in both English and Spanish, ensuring accessibility for all debtors. The Act does not apply to debts secured by real property and emphasizes that it does not diminish the rights of creditors to pursue payment from perpetrators of coerced debt. Overall, the legislation aims to protect vulnerable individuals from the repercussions of coerced debt while establishing clear responsibilities for creditors.