Debt collectors would give notice and stop collection for documented abuse

A collector would have to send written notice before first contacting someone about a debt it bought or received. This applies to a licensed collector contacting someone about a claim purchased, assigned, or transferred to it. The notice must include the debt amount, collector and creditor names, last payment details, and information about stopping collection for documented economic abuse. This bill would take effect only if HB 6419 also becomes law. The notice must be sent at least five days before the collector’s first contact about the claim.

A collector could not contact someone about, try to collect, or collect a debt after receiving documentation of economic abuse. This applies when a debtor gives the collector documentation of economic abuse as defined in the bill. Documentation may include certain protective, probation, release, or parole orders; police or identity theft reports; a qualified third-party report; or a court order. A qualified third-party report must link the debt to abuse by a current or former spouse, co-parent, dating partner, or household member. If the documents are insufficient, the collector must explain what is missing within five days. If the person provides a preferred contact method, the collector must use it for that notice and future messages. This bill would take effect only if HB 6419 also becomes law. The five-day deadline to explain missing information starts when the collector receives insufficient documentation.