By Bob Katzen
Senate 39-0, approved and sent to the House a bill that supporters said would protect consumers and keep people from being pushed into financial ruin if they are sued for financial debt. They said the new law would make debt collection practices fairer, protect wages and make clear that no person can be imprisoned for unpaid consumer debt.
Provisions include expanding the amount of an individual’s paycheck that is shielded from wage garnishment; establishing a 5-year statute of limitations on debt collection; and reducing from 12 percent to 3 percent the maximum interest rate that can be imposed on judgments on consumer debt.
“Those caught in the grip of a debt cycle know all too well the often-predatory practices used by debt collectors, and the crippling reality of staring down a ballooning debt that seems insurmountable,” said Sen. Paul Feeney (D-Foxborough), Chair of the Committee on Financial Services. “While the Debt Collection Fairness Act will not eliminate debt or an obligation to pay, the bill does provide a lifeline and opportunity for hope for those caught in the deepest depths of this spiral so that families have some room to breathe, to move forward and break this debilitating cycle.”
“President Trump is dismantling federal government agencies dedicated to protecting consumers,” said sponsor Sen. Jamie Eldridge (D-Marlborough). “Here in Massachusetts, I am proud that the state Senate is voting on my bill—the Debt Collection Fairness Act—to provide protections from the predatory practices of debt collectors for working class families.”
“I’m pleased the Senate has passed this commonsense consumer protection measure,” said Sen. Mike Rodrigues (D-Westport), Chair of the Senate Committee on Ways and Means. “This long overdue legislation will protect individuals from being pushed over a financial cliff due to unsavory debt collectors who prey upon people experiencing financial hardship, with marginalized communities often being disproportionally affected. It’s more important than ever for the commonwealth to stand up and protect these basic consumer rights in the wake of protections disappearing at the federal level.”
The bill was approved by the Senate in the 2023-2024 session but died in the House Ways and Means Committee and never reached the House floor for debate and a vote.
(A “Yes” vote is for the bill.)
Sen. Patricia Jehlen Yes