An Act amending Title 12 (Commerce and Trade) of the Pennsylvania Consolidated Statutes, providing for protections against coerced debt; and imposing duties on the Administrative Office of Pennsylvania Courts.
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Overview
This bill establishes protections against ‘coerced debt’ in Pennsylvania, which is defined as a debt incurred due to domestic violence, fraud, duress, or other coercive tactics. It creates a process for debtors to dispute debts they believe are coerced, requiring creditors to investigate and potentially cease collection efforts. The bill also imposes duties on the Administrative Office of Pennsylvania Courts and the Treasury Department, including developing a specific petition and notifying consumer reporting agencies.
Key provisions
- Creates a process for debtors to dispute debts they believe are ‘coerced debt’ based on specific abusive tactics.
- Defines ‘coerced debt’ as a debt resulting from domestic violence, fraud, duress, or similar coercive actions.
- Requires creditors to investigate debt disputes and potentially cease collection efforts if a debt is determined to be coerced.
- Establishes a specific petition form for debtors to use in disputing debts.
- Mandates that creditors notify consumer reporting agencies of coerced debt determinations.
- Outlines a two-year window for debtors to challenge creditor determinations regarding coerced debt.
- Imposes duties on the Administrative Office of Pennsylvania Courts to develop and post the petition.
- Requires creditors to notify the debtor of their determination and provide reasons for the decision.
Who is affected
Bill text
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Document of record
- Version
- Pn 3117 Html
- Published
- Not published in the source record
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Sponsors
Official sponsors from legislative records.
4 on record
Primary sponsor
Cosponsors
R. Lee James
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