An act relating to remedies and protections for victims of coerced debt

Summary

The act adds a subchapter that defines “coerced debt” and makes it illegal for a creditor to collect any debt that was obtained through fraud, intimidation, identity theft or economic abuse. It requires creditors to cease collection, return payments, delete the debt from credit reports, and give victims clear notice, while giving victims a civil defense and allowing them to sue perpetrators. The law applies to all creditors, debtors who are survivors of abuse, and consumer‑reporting agencies.

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