By Bob Katzen

The senate 39-0, approved and sent to the House a bill that would make some changes in the current state laws about debt collection practices.

The measure includes reducing from 12 percent to 3 percent the maximum interest rate that can be charged for judgments on consumer debt; increasing from $750 per week to $975 per week the amount of a person’s wages that is protected from garnishment because of a debt; reducing from six years to five years, the time in which a company can bring suit to collect a consumer debt; and ensuring that no one is imprisoned for failure to pay a consumer debt.

“In Massachusetts, no family should have to choose between putting food on the table or making a minimum payment on a ballooning debt,” said Sen. Paul Feeney (D-Foxborough), Senate Chair of the Committee on Financial Services. “Debt collection practices can, at times, be predatory, unlawful and designed to squeeze every dime out of middle-class and low-income families, especially with the added burden of accumulating interest and additional fees that are designed to push families over a financial cliff. The [legislation] will not eliminate debt or an obligation to pay, but it will add needed guardrails to protect hard-working families from financial ruin, give a lifeline to those caught in a debt spiral and help deliver hope to those in a vicious cycle.”

“This bill aims to implement stricter regulations on debt collectors in order to prevent financial mistreatment of Massachusetts residents,” said chief sponsor Sen. Jamie Eldridge (D-Marlborough). “It seeks to safeguard consumers’ economic security during debt repayment, prohibit excessively high interest rates and eliminate the possibility of consumers being sent to ‘debtor’s prison’ when facing legal action.”

(A “Yes” vote is for the bill.)

Sen. Patricia Jehlen Yes