Vote Smart's Synopsis:

Vote to pass a bill that establishes consumer protections regarding debt collection in Massachusetts.

Highlights:

• Exempts the greater of 90% of a debtor's gross weekly wages or an amount equal to 65 times the higher of the federal or state minimum hourly wage from attachment and garnishment when satisfying a judgment for a consumer debt (Sec. 1).

• Authorizes a debtor subject to a judgment for collection of a consumer debt to exempt additional wages from attachment through a claim of undue financial hardship and specifies relevant procedures for such claims (Sec. 1).

• Establishes priority for orders of attachment on consumer debts based on date of issuance (Sec. 1).

• Prohibits employers from taking adverse employment action against an employee subject to garnishments and establishes a civil penalty, including a fine of up to $1,000 for violations (Sec. 1).

• Establishes a 5-year statute of limitations for the filing of actions to collect consumer debts and prohibits parties from taking legal action after said statute has passed (Sec. 1).

• Requires that a consumer debt based on a judgment or decree be collected within 10 years of issuance and authorizes one renewal within this period (Sec. 1).

• Establishes various requirements surrounding the notification and commencement of legal proceedings (Sec. 1).

• Prohibits the issuance of warrants to compel the attendance of an alleged consumer debtor for failure to appear at a supplementary process in a civil action arising from these provisions except under specified circumstances (Sec. 1).

• Prohibits the imprisonment of debtors for failure to pay consumer debt or comply with a court order to pay consumer debt (Sec. 1).

• Limits interest on consumer debt judgments to 12% per year (Sec. 1).

• Limits interest on collection actions and judgment renewals to 3% per year (Sec. 1).

• Prohibits a plaintiff from collecting attorney’s fees on a consumer debt unless they are party to a contract requiring such collection and limits collection to 15% of the amount of the debt (Sec. 1).

• Establishes certain civil penalties for violations of these provisions (Sec. 1).

• Prohibits waivers that deprive consumers of rights guaranteed by these provisions (Sec. 1).

• Specifies that these provisions shall apply to consumers whose physical place of employment is within the state of Massachusetts (Sec. 1).

• Exempts income from child support payments from these provisions mentioned above (Sec. 1).

• Exempts proceedings relating to divorce, alimony, maintenance, and child support orders from these provisions (Sec. 1).

• Specifies that these provisions shall not apply to consumer debts or contracts in effect before January 1, 2026 (Sec. 3).

• Specifies that the provisions mentioned above shall take effect January 1, 2026 (Sec. 5).

Full Bill Text