Byron Pelton

Sections 2 and 5 of the bill require a creditor, debt collector, or debt collection agency to cease collection of a debt or any disputed portion of a debt if a consumer notifies the creditor, debt collector, or collection agency in writing that the debt or a portion of the debt is the result of economic abuse or coerced debt and provides a written statement of coerced debt and sufficient documentation to the creditor, debt collector, or collection agency until the debt collector or collection agency obtains a decree, judgment, or court order finding the debt was not the result of economic abuse or coerced debt. Sections 3 and 4 prohibit a debt collector or debt collection agency from collecting or attempting to collect any debt that is the result of economic abuse or coerced debt unless the debt collector or debt collection agency first obtains a decree, judgment, or court order finding the debt was not the result of economic abuse or coerced debt.
Current law requires a consumer reporting agency to reinvestigate a disputed item in the consumer's file free of charge. Sections 6 and 7 authorize a consumer reporting agency to reinvestigate an item that the consumer asserts is the result of economic abuse or coerced debt. Section 8 adds economic abuse and coerced debt to the definition of "coercion" as it relates to civil protection orders issued in cases of domestic violence.(Note: This summary applies to this bill as introduced.)