On May 23, CT LEG passed bill to assist domestic violence victims.
CT LEG passed bill SB 123 to establish fairer conditions to collect credit card debt, if coerced, from victims of domestic violence or sexual assault; creates Public Act 24-77.
Key Bill Provisions
Define coerced debt to be expenses incurred due to domestic violence or sexual assault where debt resulted in response to duress, intimidation, or to forced threat.
Prohibit any individual from knowingly causing coerced debt on any other individual.
The instigator of the debt shall be held civilly liable to any and all claimants including consumer collection agencies for the debt and for legal fees, as determined by a court.
Claimant must suspend debt collection activities until it completes a review, including debtor attestation and obtaining documents on the circumstances of the coerced debt.
Must also notify credit bureau if negative information about the debtor was furnished.
Legislative History
On Feb. 22, 2024, bill introduced in the Senate; on Apr. 24, 2024, bill passed Senate.
On Apr. 25, 2024, bill was introduced in House; on May 3, 2024, bill passed the House.
On May 17, 2024, assigned Public Act 24-77; on May 23, 2024, bill sent to governor.
Effectiveness
If enacted, bill becomes effective on Jan. 1, 2025.
May 2024 CT LEG Governor Approval
On May 30, 2024, CT LEG reported that governor approved bill, Public Act 24-77.
Regulators
CT LEG
Entity Types
Bank; CNSM; CRB; Servicer
Reference
Act 24-77, Bill SB123, 5/30/2024; Bill SB123, Public Act 24-77, 5/23/2024
