H 4316
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 unfair debt collection practices. It establishes definitions for key terms like ‘consumer debt,’ ‘debt buyer,’ and ‘debt collector,’ and introduces provisions regarding wage exemptions, limitations on interest rates, and procedures for court appearances. The bill also addresses attorney’s fees and seeks to prevent adverse employment actions based on debt collection efforts.
Key provisions
- Establishes definitions for key terms related to debt collection, including ‘consumer debt,’ ‘debt buyer,’ and ‘debt collector.’
- Provides for wage exemptions when a judgment is attached to satisfy a consumer debt, specifically protecting 90% of weekly earnings or 65 times the minimum wage.
- Limits interest rates on consumer debt judgments to a fixed rate of 12% per annum, with a reduced rate of 3% per annum for judgments entered on or after January 1, 2026.
- Restricts attorney’s fees that can be collected in consumer debt cases, limiting them to 15% of the debt amount (excluding fees) unless a contract specifically allows for a higher percentage.
- Modifies procedures for supplemental processes and payment review hearings in small claims actions to protect consumers from unnecessary court appearances.
- Prohibits employers from taking adverse employment action against employees due to garnishments for consumer debts.
- Establishes a timeframe of 5 years from the accrual of a cause of action for filing a lawsuit to collect a consumer debt.
Sponsors
Official sponsors from legislative records.
Primary sponsor
Joint Committee on Financial Services
Cosponsors
Carmine Lawrence Gentile
Christine P. Barber
Danillo A. Sena
David Henry Argosky LeBoeuf
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Bill H.4316 194th (Current)
An Act relative to fairness in debt collection
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Bill Information
Bill Information
Sponsor: Joint Committee on Financial Services Status: Referred to House Committee on Ways and Means
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Bill History Cosponsors Committee Summary
Bill History
Displaying 3 actions for Bill H.4316
| Date | Branch | Action |
| 7/28/2025 | House | Reported from the committee on Financial Services |
| 7/28/2025 | House | New draft of H1275 |
| 7/28/2025 | House | Bill reported favorably by committee and referred to the committee on House Ways and Means |
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