S 2551
An Act relative to fairness in debt collection
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Bill overview
This bill, titled the ‘Fairness in Debt Collection Act,’ aims to protect consumers from abusive debt collection practices. It establishes definitions for key terms like ‘consumer debt’ and ‘debt collector,’ and introduces provisions regarding wage exemptions, court procedures, and interest rates on debt collection judgments. The bill seeks to ensure fairness and transparency in the debt collection process, particularly regarding earnings and court appearances.
Key provisions
- Establishes definitions for terms like ‘consumer debt,’ ‘debt buyer,’ and ‘debt collector.’
- Provides exemptions for a portion of a consumer’s earnings when used to satisfy a judgment for consumer debt, specifically 90% of weekly wages or 65 times the minimum wage.
- Requires courts to hold hearings to determine additional wage exemptions for consumers facing financial hardship.
- Limits interest rates on consumer debt collection to a fixed rate of 12% per annum.
- Modifies procedures for supplementary processes and payment review hearings in small claims actions.
- Prohibits employers from taking adverse employment action based on garnishments for consumer debts.
- Sets a five-year statute of limitations for filing lawsuits to collect consumer debt.
- Limits attorney’s fees in consumer debt collection cases to 15% of the debt amount, subject to certain conditions.
Who is affected
- Consumers
- Debt collectors
- Creditors
- Employers
Sponsors
Official sponsors from legislative records.
Primary sponsor
Senate Committee on Ways and Means
Cosponsors
James B. Eldridge
Joan B. Lovely
Michael J. Barrett
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Bill S.2551 194th (Current)
An Act relative to fairness in debt collection
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Bill Information
Bill Information
Sponsor: Senate Committee on Ways and Means
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Bill History Amendments Cosponsors
Bill History
Displaying 8 actions for Bill S.2551
| Date | Branch | Action |
| 7/10/2025 | Senate | Reported form the committee on Senate Ways and Means |
| 7/10/2025 | Senate | Recommended new draft for S2537 |
| 7/10/2025 | Senate | Order relative to subject matter adopted |
| 7/17/2025 | Senate | Amendment #1 (Rodrigues) adopted |
| 7/17/2025 | Senate | Substituted, as amended, for S2537 |
| 7/17/2025 | Senate | Ordered to a third reading |
| 7/17/2025 | Senate | Read third |
| 7/17/2025 | Senate | Reprinted, as amended, see S2559 |
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