The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Appropriations Committee on Agriculture, Environment, and General
Government
BILL: CS/SB 128
INTRODUCER: Banking and Insurance Committee and Senator Rodriguez
SUBJECT: Contacting Consumer Debtors
DATE: April 17, 2023 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Moody Knudson BI Fav/CS
2. Sanders Betta AEG Favorable
3. FP
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/SB 128 creates s. 559.721, Florida Statutes, to prohibit consumer collection agencies from
contacting, for the purpose of collecting a debt, victims of human trafficking and economic abuse
and a debtor whose debt arose when the debtor was in foster care.
The bill’s prohibition on consumer debt collection requires victims of human trafficking to
provide copies of official documentation to creditors as proof they are a crime victim. Such
victims and a debtor whose debt arose when he or she was in foster care also must provide the
creditor with an affidavit confirming certain information regarding the debt and how it was
incurred.
Victims of human trafficking who comply with these requirements may not be contacted by
creditors for one year from the date the affidavit is provided or indefinitely if the perpetrator of
the crime has been convicted of the reported offense.
The Office of Financial Regulation (OFR) is required to report certain information regarding
consumer complaints of an alleged violation of the new section to the appropriate regulatory
body, the Federal Government, or the Florida Bar.
The bill does not impact state revenues or expenditures.
The bill is effective July 1, 2023.
BILL: CS/SB 128 Page 2
II. Present Situation:
Debt Collection Laws
Federal Fair Debt Collection Practices Act (FDCPA)
The FDCPA was established as a result of abusive, deceptive, and unfair debt collection
practices.1 The FDCPA is aimed at eliminating abusive debt collection practices by debt
collectors,2 to ensure those that do not engage in abusive practices are not competitively
disadvantaged, and to promote consistent state action to protect consumers.3,4
A debt collector who is attempting to acquire location information of the consumer must comply
with certain requirements, such as identify himself, state he is confirming or correcting location
information, and identify his employer only if expressly asked.5 With limited exceptions, the
FDCPA limits circumstances under which a debt collector may communicate with a consumer6
with respect to collecting any debt,7,8 and restricts the individuals with whom a debt collector
may communicate about any debt.9 If a consumer notifies a debt collector in writing that he or
she refuses to pay a debt or wishes to cease communication, the debt collector must not
communicate with the consumer except to notify the consumer of specified information.10
Except if the information is relayed during initial communications or the consumer paid the debt,
within five days after the initial communication with a consumer, a debt collector must provide
the consumer with a written notice containing information related to the debt.11
The FDCPA prohibits a debt collector from engaging in any conduct that results in harassment,
oppression, or abuse of any person in collection of a debt, and specifies certain conduct which
constitutes a violation of this provision.12 A debt collector is also prohibited from using any
false, deceptive, or misleading representation or means in the collection of any debt, and the
FDCPA specifies conduct which constitutes a violation of this provision.13
1
15 U.S.C. s. 1692(a).
2
15 U.S.C. s. 1692a(6) defines “debt collector” as any person who uses any instrumentality of interstate commerce or the
mails in any business the principal purpose of which is the collection of any debts, or who regularly collects or attempts to
collect, directly or indirectly, debts owed or due or asserted to be owed or due another. Notwithstanding certain exclusions,
the term included any creditor who, in the process of collecting his debts, uses any name other than his own which would
indicate that a third person is collecting or attempting to collect such debts. For purposes of s. 1692f(6), the term includes any
person who uses any instrumentality of interstate commerce or the mails in any business the principal purpose of which is the
enforcement of security interest. The term excludes certain persons, such as any officer or employee of a creditor.
3
15 U.S.C. s. 1692a(3) defines “consumer” as any natural person obligated or allegedly obligated to pay any debt.
4
15 U.S.C. s. 1692(c).
5
15 U.S.C. s. 1692b(1).
6
15 U.S.C. s. 1692b(d) defines “consumer,” for purposes of this section, to include the consumer’s spouse, parent (if the
consumer is a minor), guardian, executor, or administrator.
7
15 U.S.C. s. 1692a(5) defines “debt” as any obligation or alleged obligation of a consumer to pay money arising out of a
transaction in which the money, property, insurance, or services which are the subject of the transaction are primarily for
personal, family, or household purposes, whether or not such obligation has been reduced to judgment.
8
15 U.S.C. s. 1692c(a) (for instance, providing the time or place in which the communication may take place, and prohibiting
contact with the consumer who is represented by an attorney except for certain circumstances).
9
15 U.S.C. s. 1692c(b).
10
15 U.S.C. s. 1692c(c).
11
15 U.S.C. s. 1692g(a).
12
15 U.S.C. s. 1692d.
13
15 U.S.C. s. 1692e.
BILL: CS/SB 128 Page 3
Any debt collector who violates these provisions is liable for actual damages, additional damages
up to $1,000 as a court allows, or certain amounts for class action suits.14 When determining
liability, a court must consider, at a minimum, certain specified factors, such as the frequency
and persistence of noncompliance by the debt collector and the nature of noncompliance.15
The Consumer Financial Protection Bureau (CFPB) must by regulation exempt from
requirements of the FDCPA any class of debt collection practices within any state if the CFPB
determines the laws of such state are substantially similar to the provision of FDCPA and have
adequate provisions of enforcement.16
Florida Consumer Collection Practices Act
The Office of Financial Regulation (OFR) is responsible for the regulation of banks, credit
unions, other financial institutions, finance companies, and securities.17 The OFR has three
divisions, including a Division of Consumer Finance which is responsible for the administration
and enforcement of ch. 559, F.S.,18 known as the Florida Consumer Collection Practices Act
(FCCPA). The OFR registers and regulates consumer collection agencies.19,20 A person is
prohibited from engaging in business as a consumer collection agency without registering with
the OFR and must renew such registration annually. 21 The following persons or entities are not
required to register with the OFR:
 An original creditor, that is any person who offers or extends credit creating a debt22 or to
whom a debt is owed, but does not include any person to the extent they receive an
assignment or transfer of a debt in default solely for the purpose of facilitating collection of
such debt for another;23
 A member of the Florida Bar;
 A financial institution authorized to do business in this state and any wholly owned
subsidiary and affiliate;
 A licensed real estate broker;
14
15 U.S.C. s. 1692k(a).
15
15 U.S.C. s. 1692k(b).
16
15 U.S.C. s. 1692o.
17
Section 20.121(3)(a)2., F.S.
18
Section 494.0011(1), F.S.
19
Section 559.55(3), F.S., defines “consumer collection agency” as any debt collector or business entity engaged in the
business of soliciting consumer debts for collection or of collecting consumer debts, which debt collector or business is not
expressly exempted under s. 559.553(3), F.S. Section 559.55(7), F.S., defines “debt collector” as any person who uses any
instrumentality of commerce within this state, whether initiated from within or outside this state, in any business the principal
purpose of which is the collection of debts, or who regularly collects or attempts to collect, directly or indirectly, debts owed
or due or asserted to be owed or due another. The term “debt collection” includes any creditor who, in the process of
collecting her or his own debts, uses any name other than her or his own which would indicate that a person is collecting or
attempting to collect such debts. The term does not include specified persons.
20
Section 559.554(1), F.S.
21
Section 559.553(1) and (2), F.S.
22
Section 559.55(7), F.S., defines “debt” or “consumer debt” as any obligation or alleged obligation of a consumer to pay
money arising out of a transaction in which the money, property, insurance, or services which are the subject of the
transaction are primarily for personal, family, or household purposes, whether or not such obligation has been reduced to
judgment.
23
Section 559.55(5), F.S.
BILL: CS/SB 128 Page 4
 An insurance real estate broker;
 An insurance company authorized to do business in this state;
 A consumer finance company and any wholly owned subsidiary and affiliate;
 A person licensed pursuant to ch. 520, F.S.;
 Certain out-of-state consumer debt collectors;24 and
 An FDIC-insured institution or subsidiary or affiliate.25
An out-of-state consumer debt collector who is not exempt and who fails to register is subject to
an enforcement action by the state.26
A person collecting consumer debts is prohibited from engaging in certain conduct, such as to:
 Simulate a law enforcement officer or a representative of any governmental agency;
 Use or threaten force or violence;
 Tell a debtor who disputes a consumer debt that the person will disclose to another
information affecting the debtor’s reputation for credit worthiness without also informing the
debtor of certain information;
 Communicate or threaten to communicate with a debtor’s employer before obtaining final
judgment against the debtor, unless certain circumstances exist;
 Use profane, obscene, vulgar, or willfully abuse language in communicating with the debtor
or any of the debtor’s family members; and
 Claim, attempt, or threaten to enforce a debt when such person knows that the debt is not
legitimate.27
A debtor28 may bring a civil action against a person who violated any of the specified prohibited
acts.29 Further a person who engages in any of the prohibited acts is liable for actual damages
and for additional statutory damages as the court may allow, but not exceeding $1,000 plus court
costs and reasonable attorney fees.30 A court may order additional statutory damages for class
action suits, punitive damages, or other equitable relief as it deems necessary or proper.31 The
court must consider the nature of the defendant’s noncompliance, the frequency and persistence
of the noncompliance, and the extent to which the noncompliance was intentional.32 A person
may not be held liable if the person shows by a preponderance of the evidence the violation was
24
Section 559.55(11), F.S., defines “out-of-state consumer debt collector” as any person whose business activities in Florida
involve both collecting or attempting to collect consumer debt from debtors located in Florida by means of interstate
communication originating from outside this state and soliciting consumer debt accounts for collection from creditors who
have a business presence in Florida. For purposes of this subsection, a creditor has a business presence in Florida if either the
creditor or an affiliate or subsidiary of the creditor has an office in Florida.
25
Section 559.553(6), F.S.
26
Section 559.553(4), F.S. An out-of-state consumer debt collector who is the subject of an enforcement action is liable up
to $10,000, reasonable attorney fees, and court costs. Section 559.565(1), F.S.
27
Section 559.72, F.S.
28
Section 559.55(8), F.S., defines “debtor” or “consumer” as any natural person obligated or allegedly obligated to pay any
debt.
29
Section 559.77(1), F.S.
30
Section 559.77(2), F.S.
31
Id.
32
Id.
BILL: CS/SB 128 Page 5
not intentional and resulted from a bona fide error.33 Any suit brought under s. 559.77(4), F.S.,
must commence within two years after the date of the alleged violation.34
A person who is registered or required to be registered in Florida as a consumer collection
agency is subject to disciplinary action for engaging in specified acts, such as fraud,
misrepresentation, concealment, or dishonest dealing by trick.35 Potential penalties include, for
instance, issuance of a reprimand, suspension of registration, revocation of a registration, denial
of a registration, imposition of a fine of up to $10,000 for each count or separate offense, and an
administrative fine of up to $1,000 per day for each day that a person engages as a consumer
collection agency without a valid registration.36
The OFR is responsible for receiving and maintaining records of complaints from consumers
concerning all persons who collect debts, including consumer collection agencies.37 The OFR
must inform and furnish any relevant information to the appropriate regulatory body of Florida,
the federal government, or the Florida Bar, if a person has been named in a consumer complaint
alleging a violation of s. 559.72, F.S.38
Human Trafficking
Human trafficking is a form of modern-day slavery.39 Human trafficking victims are young
children, teenagers, and adults who may be citizens that are trafficked domestically within the
borders of the United States or smuggled across international borders worldwide.40 Many human
trafficking victims are induced with false promises of financial or emotional security, but are
forced or coerced into commercial sex, domestic servitude, or other types of forced labor.41 Any
person who is younger than 18 years old and who is induced to perform a commercial sex act is a
human trafficking victim even if there is no forced fraud or coercion.42 Increasingly, criminal
organizations, such as gangs, are enticing local school children into commercial sexual
exploitation or trafficking.43 The average ages of youth who are trafficked are 11-13 years old.44
The United States Congress passed the Victims of Trafficking and Violence Protection Act (Act)
of 2000 to combat human trafficking by establishing several methods of prosecuting traffickers,
33
Section 559.77(3), F.S.
34
Section 559.77(4).
35
Section 559.730(1), F.S.
36
Section 559.730(2), F.S.
37
Section 559.725(1), F.S.
38
Section 559.772(2), F.S.
39
Section 787.06(1)(a), F.S.
40
Id.
41
The Department of Education (the DOE), Healthy Schools – Human Trafficking, available at
http://www.fldoe.org/schools/healthy-schools/human-trafficking.stml (last visited April 4, 2023) (hereinafter cited as “DOE
Human Trafficking”).
42
Id.
43
Id.
44
The DOE, Presentation to the State Board of Education, Child Trafficking Prevention Education, p. 3, September 20, 2019,
available at http://www.fldoe.org/core/fileparse.php/5575/urlt/ChildTraffickingPres.pdf (last visited April 4, 2023).
BILL: CS/SB 128 Page 6
preventing trafficking, and protecting victims.45 The Act contains severe penalties and mandates
restitution for victims of human trafficking.46
The United States Department of Justice reports that every two minutes a child is trafficked for
the purpose of sexual exploitation in the United States.47 Approximately 24.9 million people are
human trafficking victims in the world.48 There are approximately 2.5 million victims of human
trafficking in the United States.49 Since 2007, the U.S. National Human Trafficking Hotline
(NHTH) has identified 82,301 cases of human trafficking with 164,839 victims being identified