CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Senate Bill No. 975Introduced by Senator MinFebruary 10, 2022 An act to add Title 1.81.35 (commencing with Section 1798.97.1) to Part 4 of Division 3 of the Civil Code, relating to debt. LEGISLATIVE COUNSEL'S DIGESTSB 975, as introduced, Min. Debt: coerced debts: right of action.Existing law regulates various practices related to debt, including its sale and collection. Existing law provides for various private rights of action, including for a patient against a psychotherapist for sexual contact, as defined and specified, a peace officer against an individual who has filed a false complaint with the officers employing agency, as specified, and a person against another for sexual harassment, as defined and specified.This bill would create a right of action that would allow an alleged debtor to bring an action or a claim against an alleged creditor to establish that the alleged creditors claim arises from a coerced debt, as specified and defined. If an alleged debtor establishes that a claim arises from a coerced debt, the bill would entitle that alleged debtor to specified relief, including an injunction restraining the creditor from holding or attempting to hold the alleged debtor personally liable on the claim, or from enforcing a judgment related to the claim against the alleged debtor.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares all of the following:(a) Economic abuse is a serious issue impacting survivors of domestic violence, survivors of elder or dependent adult abuse, foster youth, and other individuals. (b) Coerced or fraudulent debts, a common component of economic abuse, can ruin an individuals credit history and financial stability, including by leaving the individual vulnerable to debt collection, substantial payment expectations, and bankruptcy. (c) The debt and poor credit score resulting from economic abuse can have long-term consequences for survivors that create barriers to education, housing, and employment opportunities. (d) Fifty-two percent of domestic violence survivors report experiencing coerced and fraudulent debt of over $10,000 per year. (e) In cases of elder abuse, family members and other trusted individuals can use their powerful positions to commit this type of abuse and take out debts through coercion or fraud. (f) Youth in foster care are particularly vulnerable because they may have multiple placements that give many adults access to their personal information. (g) A pilot project in the City of Los Angeles worked with over 100 foster youth who had hundreds of separate accounts reported in their names as the result of errors or identity theft. A 2018 survey conducted by the Identity Theft Resource Center and Symantec that included youth in the Counties of Santa Clara and San Diego found that 15 percent of foster youth surveyed were victims of identity theft. SEC. 2. Title 1.81.35 (commencing with Section 1798.97.1) is added to Part 4 of Division 3 of the Civil Code, to read:TITLE 1.81.35. Coerced Debt1798.97.1. For purposes of this title, the following definitions apply:(a) Adequate documentation means any of the following:(1) A police report indicating that a debt was incurred as a result of duress, intimidation, threat, force, fraud, or exploitation.(2) A Federal Trade Commission identity theft report regarding a debt that was incurred as a result of duress, intimidation, threat, force, fraud, or exploitation.(3) A court order issued pursuant to Section 6340 of the Family Code relating to domestic violence, Section 213.5 of the Welfare and Institutions Code relating to a dependent of juvenile court, or Section 15657.03 of the Welfare and Institutions Code relating to elder or dependent abuse identifying a particular debt as resulting from duress, intimidation, threat, force, fraud, or exploitation.(4) (A) Documentation from a qualified third-party professional based on information they received while acting in a professional capacity indicating that the debt was incurred as a result of duress, intimidation, threat, force, fraud, or exploitation.(B) Documentation described by subparagraph (A) may be signed by a qualified third-party professional only if the documentation displays the letterhead of the office, institution, center, or organization, as appropriate, that engages or employs, whether financially compensated or not, the qualified third-party professional.(b) Claim means a right to payment, whether or not that right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured.(c) Coerced debt means a debt incurred in the name of a debtor through duress, intimidation, threat, force, fraud, or exploitation of the debtors resources or personal information for personal gain.(d) (1) Creditor means a person or entity that has a claim against a debtor or an alleged debtor or against the property of a debtor or an alleged debtor arising from a coerced debt, including, but not limited to, a debt collector and a debt buyer.(2) Notwithstanding paragraph (1), creditor shall not include a person who caused the claim described in paragraph (1) to arise through duress, intimidation, threat, force, fraud, or exploitation of the resources or personal identifying information of the debtor or alleged debtor for personal gain.(e) Debtor means a person who owes or is otherwise liable for a coerced debt.(f) Personal information means the name, address, telephone number, drivers license number, social security number, email address, social media profile or screen name, place of employment, employee identification number, mothers maiden name, demand deposit account number, savings account number, checking account number, or credit card number of a debtor or alleged debtor.(g) Qualified third-party professional means any of the following:(1) A domestic violence counselor, as defined in Section 1037.1 of the Evidence Code.(2) A sexual assault counselor, as defined in Section 1035.2 of the Evidence Code.(3) A Court-Appointed Special Advocate, as defined in Section 101 of the Welfare and Institutions Code.(4) A court-appointed attorney, as defined in subdivision (e) of Section 317 of the Welfare and Institutions Code.(5) A board certified psychiatrist or psychologist.(6) A licensed marriage and family therapist.(7) A licensed professional clinical counselor.(8) A licensed clinical social worker.(9) A social worker or caseworker employed by an adult protective service agency for the purposes described in Chapter 13 (commencing with Section 15750) of Part 3 of Division 9 of the Welfare and Institutions Code.(10) A social worker who has completed the child welfare training program described in Article 2 (commencing with Section 16205) of Chapter 3 of Part 4 of Division 9 of the Welfare and Institutions Code.1798.97.2. (a) (1) An alleged debtor may bring an action against an alleged creditor to establish that the alleged creditors claim arises from a coerced debt.(2) In an action brought by an alleged creditor to recover a claim against the alleged debtor, the alleged debtor may file a cross-complaint to establish that the claim is a coerced debt.(b) (1) At least 30 days before commencing an action or filing a cross-complaint described by subdivision (a), the alleged debtor shall provide the alleged creditor with written notice of the intent to file the action or cross-complaint, which shall include a description of claim at issue. (2) The alleged debtor shall not commence an action or file a cross-complaint described in subdivision (a) if the alleged creditor ceases all efforts to collect on the claim identified in the written notice provided pursuant to paragraph (1) before the expiration of the 30-day period.(3) For purposes of this subdivision, the 30-day period shall begin to run when the alleged creditor receives the notice provided under paragraph (1). (c) If the alleged debtor establishes by a preponderance of the evidence in an action brought or cross-complaint filed pursuant to subdivision (a) that the claim is a coerced debt, the court shall award all of the following relief:(1) A declaratory judgment that the alleged debtor is not obligated to the creditor on the claim.(2) An injunction prohibiting the creditor from holding or attempting to hold the alleged debtor personally liable on the claim and prohibiting the creditor from enforcing a judgment related to the claim against the alleged debtor.(3) An order dismissing any cause of action brought by the creditor to enforce or collect on the claim from the alleged debtor.(d) An alleged debtor who files unmeritorious motions, pleadings, or other papers, conducts unnecessary discovery, or engages in other tactics that are frivolous or solely intended to cause unnecessary delay against an alleged creditor shall be liable for the alleged creditors attorneys fees and costs in defending the lawsuit.(e) An alleged creditor may collect against any appropriate person or entity other than the alleged debtor.(f) Information regarding a secured or unsecured consumer debt documented to be a coerced debt shall be deemed incomplete or inaccurate for purposes of subdivision (a) of Section 1785.25.1798.97.3. A court shall have continuing jurisdiction over an action or cross-complaint filed pursuant to this title in order to provide for the joinder of related causes of action based on the contention that an alleged creditors claim against an alleged debtor is for a coerced debt, and the joinder of further defendants based on the contention that their claims against the alleged debtor are coerced debts, regardless of whether a final judgment has been entered as to any defendant. The courts continuing jurisdiction shall terminate 10 years after filing of the original action unless the court, before that date, finds good cause to extend jurisdiction over the matter.1798.97.4. An action brought pursuant to this title or any joinder of a defendant pursuant to Section 1798.82 may be brought within four years of the date the alleged debtor knew or, in the exercise of reasonable diligence should have known, of the existence of facts which would give rise to the bringing of the action against, or joinder of, the defendant.1798.97.5. (a) This title does not apply to a transaction subject to the Song-Beverly Credit Card Act of 1971 (Title 1.3 (commencing with Section 1747)).(b) A creditor may use all rights and remedies against a person who caused a coerced debt to be incurred or against a person who used or possessed money, goods, services, or property obtained through a coerced debt.
CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Senate Bill No. 975Introduced by Senator MinFebruary 10, 2022 An act to add Title 1.81.35 (commencing with Section 1798.97.1) to Part 4 of Division 3 of the Civil Code, relating to debt. LEGISLATIVE COUNSEL'S DIGESTSB 975, as introduced, Min. Debt: coerced debts: right of action.Existing law regulates various practices related to debt, including its sale and collection. Existing law provides for various private rights of action, including for a patient against a psychotherapist for sexual contact, as defined and specified, a peace officer against an individual who has filed a false complaint with the officers employing agency, as specified, and a person against another for sexual harassment, as defined and specified.This bill would create a right of action that would allow an alleged debtor to bring an action or a claim against an alleged creditor to establish that the alleged creditors claim arises from a coerced debt, as specified and defined. If an alleged debtor establishes that a claim arises from a coerced debt, the bill would entitle that alleged debtor to specified relief, including an injunction restraining the creditor from holding or attempting to hold the alleged debtor personally liable on the claim, or from enforcing a judgment related to the claim against the alleged debtor.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO
CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION
Senate Bill
No. 975
Introduced by Senator MinFebruary 10, 2022
Introduced by Senator Min
February 10, 2022
An act to add Title 1.81.35 (commencing with Section 1798.97.1) to Part 4 of Division 3 of the Civil Code, relating to debt.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 975, as introduced, Min. Debt: coerced debts: right of action.
Existing law regulates various practices related to debt, including its sale and collection. Existing law provides for various private rights of action, including for a patient against a psychotherapist for sexual contact, as defined and specified, a peace officer against an individual who has filed a false complaint with the officers employing agency, as specified, and a person against another for sexual harassment, as defined and specified.This bill would create a right of action that would allow an alleged debtor to bring an action or a claim against an alleged creditor to establish that the alleged creditors claim arises from a coerced debt, as specified and defined. If an alleged debtor establishes that a claim arises from a coerced debt, the bill would entitle that alleged debtor to specified relief, including an injunction restraining the creditor from holding or attempting to hold the alleged debtor personally liable on the claim, or from enforcing a judgment related to the claim against the alleged debtor.
Existing law regulates various practices related to debt, including its sale and collection. Existing law provides for various private rights of action, including for a patient against a psychotherapist for sexual contact, as defined and specified, a peace officer against an individual who has filed a false complaint with the officers employing agency, as specified, and a person against another for sexual harassment, as defined and specified.
This bill would create a right of action that would allow an alleged debtor to bring an action or a claim against an alleged creditor to establish that the alleged creditors claim arises from a coerced debt, as specified and defined. If an alleged debtor establishes that a claim arises from a coerced debt, the bill would entitle that alleged debtor to specified relief, including an injunction restraining the creditor from holding or attempting to hold the alleged debtor personally liable on the claim, or from enforcing a judgment related to the claim against the alleged debtor.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares all of the following:(a) Economic abuse is a serious issue impacting survivors of domestic violence, survivors of elder or dependent adult abuse, foster youth, and other individuals. (b) Coerced or fraudulent debts, a common component of economic abuse, can ruin an individuals credit history and financial stability, including by leaving the individual vulnerable to debt collection, substantial payment expectations, and bankruptcy. (c) The debt and poor credit score resulting from economic abuse can have long-term consequences for survivors that create barriers to education, housing, and employment opportunities. (d) Fifty-two percent of domestic violence survivors report experiencing coerced and fraudulent debt of over $10,000 per year. (e) In cases of elder abuse, family members and other trusted individuals can use their powerful positions to commit this type of abuse and take out debts through coercion or fraud. (f) Youth in foster care are particularly vulnerable because they may have multiple placements that give many adults access to their personal information. (g) A pilot project in the City of Los Angeles worked with over 100 foster youth who had hundreds of separate accounts reported in their names as the result of errors or identity theft. A 2018 survey conducted by the Identity Theft Resource Center and Symantec that included youth in the Counties of Santa Clara and San Diego found that 15 percent of foster youth surveyed were victims of identity theft. SEC. 2. Title 1.81.35 (commencing with Section 1798.97.1) is added to Part 4 of Division 3 of the Civil Code, to read:TITLE 1.81.35. Coerced Debt1798.97.1. For purposes of this title, the following definitions apply:(a) Adequate documentation means any of the following:(1) A police report indicating that a debt was incurred as a result of duress, intimidation, threat, force, fraud, or exploitation.(2) A Federal Trade Commission identity theft report regarding a debt that was incurred as a result of duress, intimidation, threat, force, fraud, or exploitation.(3) A court order issued pursuant to Section 6340 of the Family Code relating to domestic violence, Section 213.5 of the Welfare and Institutions Code relating to a dependent of juvenile court, or Section 15657.03 of the Welfare and Institutions Code relating to elder or dependent abuse identifying a particular debt as resulting from duress, intimidation, threat, force, fraud, or exploitation.(4) (A) Documentation from a qualified third-party professional based on information they received while acting in a professional capacity indicating that the debt was incurred as a result of duress, intimidation, threat, force, fraud, or exploitation.(B) Documentation described by subparagraph (A) may be signed by a qualified third-party professional only if the documentation displays the letterhead of the office, institution, center, or organization, as appropriate, that engages or employs, whether financially compensated or not, the qualified third-party professional.(b) Claim means a right to payment, whether or not that right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured.(c) Coerced debt means a debt incurred in the name of a debtor through duress, intimidation, threat, force, fraud, or exploitation of the debtors resources or personal information for personal gain.(d) (1) Creditor means a person or entity that has a claim against a debtor or an alleged debtor or against the property of a debtor or an alleged debtor arising from a coerced debt, including, but not limited to, a debt collector and a debt buyer.(2) Notwithstanding paragraph (1), creditor shall not include a person who caused the claim described in paragraph (1) to arise through duress, intimidation, threat, force, fraud, or exploitation of the resources or personal identifying information of the debtor or alleged debtor for personal gain.(e) Debtor means a person who owes or is otherwise liable for a coerced debt.(f) Personal information means the name, address, telephone number, drivers license number, social security number, email address, social media profile or screen name, place of employment, employee identification number, mothers maiden name, demand deposit account number, savings account number, checking account number, or credit card number of a debtor or alleged debtor.(g) Qualified third-party professional means any of the following:(1) A domestic violence counselor, as defined in Section 1037.1 of the Evidence Code.(2) A sexual assault counselor, as defined in Section 1035.2 of the Evidence Code.(3) A Court-Appointed Special Advocate, as defined in Section 101 of the Welfare and Institutions Code.(4) A court-appointed attorney, as defined in subdivision (e) of Section 317 of the Welfare and Institutions Code.(5) A board certified psychiatrist or psychologist.(6) A licensed marriage and family therapist.(7) A licensed professional clinical counselor.(8) A licensed clinical social worker.(9) A social worker or caseworker employed by an adult protective service agency for the purposes described in Chapter 13 (commencing with Section 15750) of Part 3 of Division 9 of the Welfare and Institutions Code.(10) A social worker who has completed the child welfare training program described in Article 2 (commencing with Section 16205) of Chapter 3 of Part 4 of Division 9 of the Welfare and Institutions Code.1798.97.2. (a) (1) An alleged debtor may bring an action against an alleged creditor to establish that the alleged creditors claim arises from a coerced debt.(2) In an action brought by an alleged creditor to recover a claim against the alleged debtor, the alleged debtor may file a cross-complaint to establish that the claim is a coerced debt.(b) (1) At least 30 days before commencing an action or filing a cross-complaint described by subdivision (a), the alleged debtor shall provide the alleged creditor with written notice of the intent to file the action or cross-complaint, which shall include a description of claim at issue. (2) The alleged debtor shall not commence an action or file a cross-complaint described in subdivision (a) if the alleged creditor ceases all efforts to collect on the claim identified in the written notice provided pursuant to paragraph (1) before the expiration of the 30-day period.(3) For purposes of this subdivision, the 30-day period shall begin to run when the alleged creditor receives the notice provided under paragraph (1). (c) If the alleged debtor establishes by a preponderance of the evidence in an action brought or cross-complaint filed pursuant to subdivision (a) that the claim is a coerced debt, the court shall award all of the following relief:(1) A declaratory judgment that the alleged debtor is not obligated to the creditor on the claim.(2) An injunction prohibiting the creditor from holding or attempting to hold the alleged debtor personally liable on the claim and prohibiting the creditor from enforcing a judgment related to the claim against the alleged debtor.(3) An order dismissing any cause of action brought by the creditor to enforce or collect on the claim from the alleged debtor.(d) An alleged debtor who files unmeritorious motions, pleadings, or other papers, conducts unnecessary discovery, or engages in other tactics that are frivolous or solely intended to cause unnecessary delay against an alleged creditor shall be liable for the alleged creditors attorneys fees and costs in defending the lawsuit.(e) An alleged creditor may collect against any appropriate person or entity other than the alleged debtor.(f) Information regarding a secured or unsecured consumer debt documented to be a coerced debt shall be deemed incomplete or inaccurate for purposes of subdivision (a) of Section 1785.25.1798.97.3. A court shall have continuing jurisdiction over an action or cross-complaint filed pursuant to this title in order to provide for the joinder of related causes of action based on the contention that an alleged creditors claim against an alleged debtor is for a coerced debt, and the joinder of further defendants based on the contention that their claims against the alleged debtor are coerced debts, regardless of whether a final judgment has been entered as to any defendant. The courts continuing jurisdiction shall terminate 10 years after filing of the original action unless the court, before that date, finds good cause to extend jurisdiction over the matter.1798.97.4. An action brought pursuant to this title or any joinder of a defendant pursuant to Section 1798.82 may be brought within four years of the date the alleged debtor knew or, in the exercise of reasonable diligence should have known, of the existence of facts which would give rise to the bringing of the action against, or joinder of, the defendant.1798.97.5. (a) This title does not apply to a transaction subject to the Song-Beverly Credit Card Act of 1971 (Title 1.3 (commencing with Section 1747)).(b) A creditor may use all rights and remedies against a person who caused a coerced debt to be incurred or against a person who used or possessed money, goods, services, or property obtained through a coerced debt.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. The Legislature finds and declares all of the following:(a) Economic abuse is a serious issue impacting survivors of domestic violence, survivors of elder or dependent adult abuse, foster youth, and other individuals. (b) Coerced or fraudulent debts, a common component of economic abuse, can ruin an individuals credit history and financial stability, including by leaving the individual vulnerable to debt collection, substantial payment expectations, and bankruptcy. (c) The debt and poor credit score resulting from economic abuse can have long-term consequences for survivors that create barriers to education, housing, and employment opportunities. (d) Fifty-two percent of domestic violence survivors report experiencing coerced and fraudulent debt of over $10,000 per year. (e) In cases of elder abuse, family members and other trusted individuals can use their powerful positions to commit this type of abuse and take out debts through coercion or fraud. (f) Youth in foster care are particularly vulnerable because they may have multiple placements that give many adults access to their personal information. (g) A pilot project in the City of Los Angeles worked with over 100 foster youth who had hundreds of separate accounts reported in their names as the result of errors or identity theft. A 2018 survey conducted by the Identity Theft Resource Center and Symantec that included youth in the Counties of Santa Clara and San Diego found that 15 percent of foster youth surveyed were victims of identity theft.
SECTION 1. The Legislature finds and declares all of the following:(a) Economic abuse is a serious issue impacting survivors of domestic violence, survivors of elder or dependent adult abuse, foster youth, and other individuals. (b) Coerced or fraudulent debts, a common component of economic abuse, can ruin an individuals credit history and financial stability, including by leaving the individual vulnerable to debt collection, substantial payment expectations, and bankruptcy. (c) The debt and poor credit score resulting from economic abuse can have long-term consequences for survivors that create barriers to education, housing, and employment opportunities. (d) Fifty-two percent of domestic violence survivors report experiencing coerced and fraudulent debt of over $10,000 per year. (e) In cases of elder abuse, family members and other trusted individuals can use their powerful positions to commit this type of abuse and take out debts through coercion or fraud. (f) Youth in foster care are particularly vulnerable because they may have multiple placements that give many adults access to their personal information. (g) A pilot project in the City of Los Angeles worked with over 100 foster youth who had hundreds of separate accounts reported in their names as the result of errors or identity theft. A 2018 survey conducted by the Identity Theft Resource Center and Symantec that included youth in the Counties of Santa Clara and San Diego found that 15 percent of foster youth surveyed were victims of identity theft.
SECTION 1. The Legislature finds and declares all of the following:
### SECTION 1.
(a) Economic abuse is a serious issue impacting survivors of domestic violence, survivors of elder or dependent adult abuse, foster youth, and other individuals.
(b) Coerced or fraudulent debts, a common component of economic abuse, can ruin an individuals credit history and financial stability, including by leaving the individual vulnerable to debt collection, substantial payment expectations, and bankruptcy.
(c) The debt and poor credit score resulting from economic abuse can have long-term consequences for survivors that create barriers to education, housing, and employment opportunities.
(d) Fifty-two percent of domestic violence survivors report experiencing coerced and fraudulent debt of over $10,000 per year.
(e) In cases of elder abuse, family members and other trusted individuals can use their powerful positions to commit this type of abuse and take out debts through coercion or fraud.
(f) Youth in foster care are particularly vulnerable because they may have multiple placements that give many adults access to their personal information.
(g) A pilot project in the City of Los Angeles worked with over 100 foster youth who had hundreds of separate accounts reported in their names as the result of errors or identity theft. A 2018 survey conducted by the Identity Theft Resource Center and Symantec that included youth in the Counties of Santa Clara and San Diego found that 15 percent of foster youth surveyed were victims of identity theft.
SEC. 2. Title 1.81.35 (commencing with Section 1798.97.1) is added to Part 4 of Division 3 of the Civil Code, to read:TITLE 1.81.35. Coerced Debt1798.97.1. For purposes of this title, the following definitions apply:(a) Adequate documentation means any of the following:(1) A police report indicating that a debt was incurred as a result of duress, intimidation, threat, force, fraud, or exploitation.(2) A Federal Trade Commission identity theft report regarding a debt that was incurred as a result of duress, intimidation, threat, force, fraud, or exploitation.(3) A court order issued pursuant to Section 6340 of the Family Code relating to domestic violence, Section 213.5 of the Welfare and Institutions Code relating to a dependent of juvenile court, or Section 15657.03 of the Welfare and Institutions Code relating to elder or dependent abuse identifying a particular debt as resulting from duress, intimidation, threat, force, fraud, or exploitation.(4) (A) Documentation from a qualified third-party professional based on information they received while acting in a professional capacity indicating that the debt was incurred as a result of duress, intimidation, threat, force, fraud, or exploitation.(B) Documentation described by subparagraph (A) may be signed by a qualified third-party professional only if the documentation displays the letterhead of the office, institution, center, or organization, as appropriate, that engages or employs, whether financially compensated or not, the qualified third-party professional.(b) Claim means a right to payment, whether or not that right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured.(c) Coerced debt means a debt incurred in the name of a debtor through duress, intimidation, threat, force, fraud, or exploitation of the debtors resources or personal information for personal gain.(d) (1) Creditor means a person or entity that has a claim against a debtor or an alleged debtor or against the property of a debtor or an alleged debtor arising from a coerced debt, including, but not limited to, a debt collector and a debt buyer.(2) Notwithstanding paragraph (1), creditor shall not include a person who caused the claim described in paragraph (1) to arise through duress, intimidation, threat, force, fraud, or exploitation of the resources or personal identifying information of the debtor or alleged debtor for personal gain.(e) Debtor means a person who owes or is otherwise liable for a coerced debt.(f) Personal information means the name, address, telephone number, drivers license number, social security number, email address, social media profile or screen name, place of employment, employee identification number, mothers maiden name, demand deposit account number, savings account number, checking account number, or credit card number of a debtor or alleged debtor.(g) Qualified third-party professional means any of the following:(1) A domestic violence counselor, as defined in Section 1037.1 of the Evidence Code.(2) A sexual assault counselor, as defined in Section 1035.2 of the Evidence Code.(3) A Court-Appointed Special Advocate, as defined in Section 101 of the Welfare and Institutions Code.(4) A court-appointed attorney, as defined in subdivision (e) of Section 317 of the Welfare and Institutions Code.(5) A board certified psychiatrist or psychologist.(6) A licensed marriage and family therapist.(7) A licensed professional clinical counselor.(8) A licensed clinical social worker.(9) A social worker or caseworker employed by an adult protective service agency for the purposes described in Chapter 13 (commencing with Section 15750) of Part 3 of Division 9 of the Welfare and Institutions Code.(10) A social worker who has completed the child welfare training program described in Article 2 (commencing with Section 16205) of Chapter 3 of Part 4 of Division 9 of the Welfare and Institutions Code.1798.97.2. (a) (1) An alleged debtor may bring an action against an alleged creditor to establish that the alleged creditors claim arises from a coerced debt.(2) In an action brought by an alleged creditor to recover a claim against the alleged debtor, the alleged debtor may file a cross-complaint to establish that the claim is a coerced debt.(b) (1) At least 30 days before commencing an action or filing a cross-complaint described by subdivision (a), the alleged debtor shall provide the alleged creditor with written notice of the intent to file the action or cross-complaint, which shall include a description of claim at issue. (2) The alleged debtor shall not commence an action or file a cross-complaint described in subdivision (a) if the alleged creditor ceases all efforts to collect on the claim identified in the written notice provided pursuant to paragraph (1) before the expiration of the 30-day period.(3) For purposes of this subdivision, the 30-day period shall begin to run when the alleged creditor receives the notice provided under paragraph (1). (c) If the alleged debtor establishes by a preponderance of the evidence in an action brought or cross-complaint filed pursuant to subdivision (a) that the claim is a coerced debt, the court shall award all of the following relief:(1) A declaratory judgment that the alleged debtor is not obligated to the creditor on the claim.(2) An injunction prohibiting the creditor from holding or attempting to hold the alleged debtor personally liable on the claim and prohibiting the creditor from enforcing a judgment related to the claim against the alleged debtor.(3) An order dismissing any cause of action brought by the creditor to enforce or collect on the claim from the alleged debtor.(d) An alleged debtor who files unmeritorious motions, pleadings, or other papers, conducts unnecessary discovery, or engages in other tactics that are frivolous or solely intended to cause unnecessary delay against an alleged creditor shall be liable for the alleged creditors attorneys fees and costs in defending the lawsuit.(e) An alleged creditor may collect against any appropriate person or entity other than the alleged debtor.(f) Information regarding a secured or unsecured consumer debt documented to be a coerced debt shall be deemed incomplete or inaccurate for purposes of subdivision (a) of Section 1785.25.1798.97.3. A court shall have continuing jurisdiction over an action or cross-complaint filed pursuant to this title in order to provide for the joinder of related causes of action based on the contention that an alleged creditors claim against an alleged debtor is for a coerced debt, and the joinder of further defendants based on the contention that their claims against the alleged debtor are coerced debts, regardless of whether a final judgment has been entered as to any defendant. The courts continuing jurisdiction shall terminate 10 years after filing of the original action unless the court, before that date, finds good cause to extend jurisdiction over the matter.1798.97.4. An action brought pursuant to this title or any joinder of a defendant pursuant to Section 1798.82 may be brought within four years of the date the alleged debtor knew or, in the exercise of reasonable diligence should have known, of the existence of facts which would give rise to the bringing of the action against, or joinder of, the defendant.1798.97.5. (a) This title does not apply to a transaction subject to the Song-Beverly Credit Card Act of 1971 (Title 1.3 (commencing with Section 1747)).(b) A creditor may use all rights and remedies against a person who caused a coerced debt to be incurred or against a person who used or possessed money, goods, services, or property obtained through a coerced debt.
SEC. 2. Title 1.81.35 (commencing with Section 1798.97.1) is added to Part 4 of Division 3 of the Civil Code, to read:
### SEC. 2.
TITLE 1.81.35. Coerced Debt1798.97.1. For purposes of this title, the following definitions apply:(a) Adequate documentation means any of the following:(1) A police report indicating that a debt was incurred as a result of duress, intimidation, threat, force, fraud, or exploitation.(2) A Federal Trade Commission identity theft report regarding a debt that was incurred as a result of duress, intimidation, threat, force, fraud, or exploitation.(3) A court order issued pursuant to Section 6340 of the Family Code relating to domestic violence, Section 213.5 of the Welfare and Institutions Code relating to a dependent of juvenile court, or Section 15657.03 of the Welfare and Institutions Code relating to elder or dependent abuse identifying a particular debt as resulting from duress, intimidation, threat, force, fraud, or exploitation.(4) (A) Documentation from a qualified third-party professional based on information they received while acting in a professional capacity indicating that the debt was incurred as a result of duress, intimidation, threat, force, fraud, or exploitation.(B) Documentation described by subparagraph (A) may be signed by a qualified third-party professional only if the documentation displays the letterhead of the office, institution, center, or organization, as appropriate, that engages or employs, whether financially compensated or not, the qualified third-party professional.(b) Claim means a right to payment, whether or not that right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured.(c) Coerced debt means a debt incurred in the name of a debtor through duress, intimidation, threat, force, fraud, or exploitation of the debtors resources or personal information for personal gain.(d) (1) Creditor means a person or entity that has a claim against a debtor or an alleged debtor or against the property of a debtor or an alleged debtor arising from a coerced debt, including, but not limited to, a debt collector and a debt buyer.(2) Notwithstanding paragraph (1), creditor shall not include a person who caused the claim described in paragraph (1) to arise through duress, intimidation, threat, force, fraud, or exploitation of the resources or personal identifying information of the debtor or alleged debtor for personal gain.(e) Debtor means a person who owes or is otherwise liable for a coerced debt.(f) Personal information means the name, address, telephone number, drivers license number, social security number, email address, social media profile or screen name, place of employment, employee identification number, mothers maiden name, demand deposit account number, savings account number, checking account number, or credit card number of a debtor or alleged debtor.(g) Qualified third-party professional means any of the following:(1) A domestic violence counselor, as defined in Section 1037.1 of the Evidence Code.(2) A sexual assault counselor, as defined in Section 1035.2 of the Evidence Code.(3) A Court-Appointed Special Advocate, as defined in Section 101 of the Welfare and Institutions Code.(4) A court-appointed attorney, as defined in subdivision (e) of Section 317 of the Welfare and Institutions Code.(5) A board certified psychiatrist or psychologist.(6) A licensed marriage and family therapist.(7) A licensed professional clinical counselor.(8) A licensed clinical social worker.(9) A social worker or caseworker employed by an adult protective service agency for the purposes described in Chapter 13 (commencing with Section 15750) of Part 3 of Division 9 of the Welfare and Institutions Code.(10) A social worker who has completed the child welfare training program described in Article 2 (commencing with Section 16205) of Chapter 3 of Part 4 of Division 9 of the Welfare and Institutions Code.1798.97.2. (a) (1) An alleged debtor may bring an action against an alleged creditor to establish that the alleged creditors claim arises from a coerced debt.(2) In an action brought by an alleged creditor to recover a claim against the alleged debtor, the alleged debtor may file a cross-complaint to establish that the claim is a coerced debt.(b) (1) At least 30 days before commencing an action or filing a cross-complaint described by subdivision (a), the alleged debtor shall provide the alleged creditor with written notice of the intent to file the action or cross-complaint, which shall include a description of claim at issue. (2) The alleged debtor shall not commence an action or file a cross-complaint described in subdivision (a) if the alleged creditor ceases all efforts to collect on the claim identified in the written notice provided pursuant to paragraph (1) before the expiration of the 30-day period.(3) For purposes of this subdivision, the 30-day period shall begin to run when the alleged creditor receives the notice provided under paragraph (1). (c) If the alleged debtor establishes by a preponderance of the evidence in an action brought or cross-complaint filed pursuant to subdivision (a) that the claim is a coerced debt, the court shall award all of the following relief:(1) A declaratory judgment that the alleged debtor is not obligated to the creditor on the claim.(2) An injunction prohibiting the creditor from holding or attempting to hold the alleged debtor personally liable on the claim and prohibiting the creditor from enforcing a judgment related to the claim against the alleged debtor.(3) An order dismissing any cause of action brought by the creditor to enforce or collect on the claim from the alleged debtor.(d) An alleged debtor who files unmeritorious motions, pleadings, or other papers, conducts unnecessary discovery, or engages in other tactics that are frivolous or solely intended to cause unnecessary delay against an alleged creditor shall be liable for the alleged creditors attorneys fees and costs in defending the lawsuit.(e) An alleged creditor may collect against any appropriate person or entity other than the alleged debtor.(f) Information regarding a secured or unsecured consumer debt documented to be a coerced debt shall be deemed incomplete or inaccurate for purposes of subdivision (a) of Section 1785.25.1798.97.3. A court shall have continuing jurisdiction over an action or cross-complaint filed pursuant to this title in order to provide for the joinder of related causes of action based on the contention that an alleged creditors claim against an alleged debtor is for a coerced debt, and the joinder of further defendants based on the contention that their claims against the alleged debtor are coerced debts, regardless of whether a final judgment has been entered as to any defendant. The courts continuing jurisdiction shall terminate 10 years after filing of the original action unless the court, before that date, finds good cause to extend jurisdiction over the matter.1798.97.4. An action brought pursuant to this title or any joinder of a defendant pursuant to Section 1798.82 may be brought within four years of the date the alleged debtor knew or, in the exercise of reasonable diligence should have known, of the existence of facts which would give rise to the bringing of the action against, or joinder of, the defendant.1798.97.5. (a) This title does not apply to a transaction subject to the Song-Beverly Credit Card Act of 1971 (Title 1.3 (commencing with Section 1747)).(b) A creditor may use all rights and remedies against a person who caused a coerced debt to be incurred or against a person who used or possessed money, goods, services, or property obtained through a coerced debt.
TITLE 1.81.35. Coerced Debt1798.97.1. For purposes of this title, the following definitions apply:(a) Adequate documentation means any of the following:(1) A police report indicating that a debt was incurred as a result of duress, intimidation, threat, force, fraud, or exploitation.(2) A Federal Trade Commission identity theft report regarding a debt that was incurred as a result of duress, intimidation, threat, force, fraud, or exploitation.(3) A court order issued pursuant to Section 6340 of the Family Code relating to domestic violence, Section 213.5 of the Welfare and Institutions Code relating to a dependent of juvenile court, or Section 15657.03 of the Welfare and Institutions Code relating to elder or dependent abuse identifying a particular debt as resulting from duress, intimidation, threat, force, fraud, or exploitation.(4) (A) Documentation from a qualified third-party professional based on information they received while acting in a professional capacity indicating that the debt was incurred as a result of duress, intimidation, threat, force, fraud, or exploitation.(B) Documentation described by subparagraph (A) may be signed by a qualified third-party professional only if the documentation displays the letterhead of the office, institution, center, or organization, as appropriate, that engages or employs, whether financially compensated or not, the qualified third-party professional.(b) Claim means a right to payment, whether or not that right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured.(c) Coerced debt means a debt incurred in the name of a debtor through duress, intimidation, threat, force, fraud, or exploitation of the debtors resources or personal information for personal gain.(d) (1) Creditor means a person or entity that has a claim against a debtor or an alleged debtor or against the property of a debtor or an alleged debtor arising from a coerced debt, including, but not limited to, a debt collector and a debt buyer.(2) Notwithstanding paragraph (1), creditor shall not include a person who caused the claim described in paragraph (1) to arise through duress, intimidation, threat, force, fraud, or exploitation of the resources or personal identifying information of the debtor or alleged debtor for personal gain.(e) Debtor means a person who owes or is otherwise liable for a coerced debt.(f) Personal information means the name, address, telephone number, drivers license number, social security number, email address, social media profile or screen name, place of employment, employee identification number, mothers maiden name, demand deposit account number, savings account number, checking account number, or credit card number of a debtor or alleged debtor.(g) Qualified third-party professional means any of the following:(1) A domestic violence counselor, as defined in Section 1037.1 of the Evidence Code.(2) A sexual assault counselor, as defined in Section 1035.2 of the Evidence Code.(3) A Court-Appointed Special Advocate, as defined in Section 101 of the Welfare and Institutions Code.(4) A court-appointed attorney, as defined in subdivision (e) of Section 317 of the Welfare and Institutions Code.(5) A board certified psychiatrist or psychologist.(6) A licensed marriage and family therapist.(7) A licensed professional clinical counselor.(8) A licensed clinical social worker.(9) A social worker or caseworker employed by an adult protective service agency for the purposes described in Chapter 13 (commencing with Section 15750) of Part 3 of Division 9 of the Welfare and Institutions Code.(10) A social worker who has completed the child welfare training program described in Article 2 (commencing with Section 16205) of Chapter 3 of Part 4 of Division 9 of the Welfare and Institutions Code.1798.97.2. (a) (1) An alleged debtor may bring an action against an alleged creditor to establish that the alleged creditors claim arises from a coerced debt.(2) In an action brought by an alleged creditor to recover a claim against the alleged debtor, the alleged debtor may file a cross-complaint to establish that the claim is a coerced debt.(b) (1) At least 30 days before commencing an action or filing a cross-complaint described by subdivision (a), the alleged debtor shall provide the alleged creditor with written notice of the intent to file the action or cross-complaint, which shall include a description of claim at issue. (2) The alleged debtor shall not commence an action or file a cross-complaint described in subdivision (a) if the alleged creditor ceases all efforts to collect on the claim identified in the written notice provided pursuant to paragraph (1) before the expiration of the 30-day period.(3) For purposes of this subdivision, the 30-day period shall begin to run when the alleged creditor receives the notice provided under paragraph (1). (c) If the alleged debtor establishes by a preponderance of the evidence in an action brought or cross-complaint filed pursuant to subdivision (a) that the claim is a coerced debt, the court shall award all of the following relief:(1) A declaratory judgment that the alleged debtor is not obligated to the creditor on the claim.(2) An injunction prohibiting the creditor from holding or attempting to hold the alleged debtor personally liable on the claim and prohibiting the creditor from enforcing a judgment related to the claim against the alleged debtor.(3) An order dismissing any cause of action brought by the creditor to enforce or collect on the claim from the alleged debtor.(d) An alleged debtor who files unmeritorious motions, pleadings, or other papers, conducts unnecessary discovery, or engages in other tactics that are frivolous or solely intended to cause unnecessary delay against an alleged creditor shall be liable for the alleged creditors attorneys fees and costs in defending the lawsuit.(e) An alleged creditor may collect against any appropriate person or entity other than the alleged debtor.(f) Information regarding a secured or unsecured consumer debt documented to be a coerced debt shall be deemed incomplete or inaccurate for purposes of subdivision (a) of Section 1785.25.1798.97.3. A court shall have continuing jurisdiction over an action or cross-complaint filed pursuant to this title in order to provide for the joinder of related causes of action based on the contention that an alleged creditors claim against an alleged debtor is for a coerced debt, and the joinder of further defendants based on the contention that their claims against the alleged debtor are coerced debts, regardless of whether a final judgment has been entered as to any defendant. The courts continuing jurisdiction shall terminate 10 years after filing of the original action unless the court, before that date, finds good cause to extend jurisdiction over the matter.1798.97.4. An action brought pursuant to this title or any joinder of a defendant pursuant to Section 1798.82 may be brought within four years of the date the alleged debtor knew or, in the exercise of reasonable diligence should have known, of the existence of facts which would give rise to the bringing of the action against, or joinder of, the defendant.1798.97.5. (a) This title does not apply to a transaction subject to the Song-Beverly Credit Card Act of 1971 (Title 1.3 (commencing with Section 1747)).(b) A creditor may use all rights and remedies against a person who caused a coerced debt to be incurred or against a person who used or possessed money, goods, services, or property obtained through a coerced debt.
TITLE 1.81.35. Coerced Debt
TITLE 1.81.35. Coerced Debt
1798.97.1. For purposes of this title, the following definitions apply:(a) Adequate documentation means any of the following:(1) A police report indicating that a debt was incurred as a result of duress, intimidation, threat, force, fraud, or exploitation.(2) A Federal Trade Commission identity theft report regarding a debt that was incurred as a result of duress, intimidation, threat, force, fraud, or exploitation.(3) A court order issued pursuant to Section 6340 of the Family Code relating to domestic violence, Section 213.5 of the Welfare and Institutions Code relating to a dependent of juvenile court, or Section 15657.03 of the Welfare and Institutions Code relating to elder or dependent abuse identifying a particular debt as resulting from duress, intimidation, threat, force, fraud, or exploitation.(4) (A) Documentation from a qualified third-party professional based on information they received while acting in a professional capacity indicating that the debt was incurred as a result of duress, intimidation, threat, force, fraud, or exploitation.(B) Documentation described by subparagraph (A) may be signed by a qualified third-party professional only if the documentation displays the letterhead of the office, institution, center, or organization, as appropriate, that engages or employs, whether financially compensated or not, the qualified third-party professional.(b) Claim means a right to payment, whether or not that right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured.(c) Coerced debt means a debt incurred in the name of a debtor through duress, intimidation, threat, force, fraud, or exploitation of the debtors resources or personal information for personal gain.(d) (1) Creditor means a person or entity that has a claim against a debtor or an alleged debtor or against the property of a debtor or an alleged debtor arising from a coerced debt, including, but not limited to, a debt collector and a debt buyer.(2) Notwithstanding paragraph (1), creditor shall not include a person who caused the claim described in paragraph (1) to arise through duress, intimidation, threat, force, fraud, or exploitation of the resources or personal identifying information of the debtor or alleged debtor for personal gain.(e) Debtor means a person who owes or is otherwise liable for a coerced debt.(f) Personal information means the name, address, telephone number, drivers license number, social security number, email address, social media profile or screen name, place of employment, employee identification number, mothers maiden name, demand deposit account number, savings account number, checking account number, or credit card number of a debtor or alleged debtor.(g) Qualified third-party professional means any of the following:(1) A domestic violence counselor, as defined in Section 1037.1 of the Evidence Code.(2) A sexual assault counselor, as defined in Section 1035.2 of the Evidence Code.(3) A Court-Appointed Special Advocate, as defined in Section 101 of the Welfare and Institutions Code.(4) A court-appointed attorney, as defined in subdivision (e) of Section 317 of the Welfare and Institutions Code.(5) A board certified psychiatrist or psychologist.(6) A licensed marriage and family therapist.(7) A licensed professional clinical counselor.(8) A licensed clinical social worker.(9) A social worker or caseworker employed by an adult protective service agency for the purposes described in Chapter 13 (commencing with Section 15750) of Part 3 of Division 9 of the Welfare and Institutions Code.(10) A social worker who has completed the child welfare training program described in Article 2 (commencing with Section 16205) of Chapter 3 of Part 4 of Division 9 of the Welfare and Institutions Code.
1798.97.1. For purposes of this title, the following definitions apply:
(a) Adequate documentation means any of the following:
(1) A police report indicating that a debt was incurred as a result of duress, intimidation, threat, force, fraud, or exploitation.
(2) A Federal Trade Commission identity theft report regarding a debt that was incurred as a result of duress, intimidation, threat, force, fraud, or exploitation.
(3) A court order issued pursuant to Section 6340 of the Family Code relating to domestic violence, Section 213.5 of the Welfare and Institutions Code relating to a dependent of juvenile court, or Section 15657.03 of the Welfare and Institutions Code relating to elder or dependent abuse identifying a particular debt as resulting from duress, intimidation, threat, force, fraud, or exploitation.
(4) (A) Documentation from a qualified third-party professional based on information they received while acting in a professional capacity indicating that the debt was incurred as a result of duress, intimidation, threat, force, fraud, or exploitation.
(B) Documentation described by subparagraph (A) may be signed by a qualified third-party professional only if the documentation displays the letterhead of the office, institution, center, or organization, as appropriate, that engages or employs, whether financially compensated or not, the qualified third-party professional.
(b) Claim means a right to payment, whether or not that right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured.
(c) Coerced debt means a debt incurred in the name of a debtor through duress, intimidation, threat, force, fraud, or exploitation of the debtors resources or personal information for personal gain.
(d) (1) Creditor means a person or entity that has a claim against a debtor or an alleged debtor or against the property of a debtor or an alleged debtor arising from a coerced debt, including, but not limited to, a debt collector and a debt buyer.
(2) Notwithstanding paragraph (1), creditor shall not include a person who caused the claim described in paragraph (1) to arise through duress, intimidation, threat, force, fraud, or exploitation of the resources or personal identifying information of the debtor or alleged debtor for personal gain.
(e) Debtor means a person who owes or is otherwise liable for a coerced debt.
(f) Personal information means the name, address, telephone number, drivers license number, social security number, email address, social media profile or screen name, place of employment, employee identification number, mothers maiden name, demand deposit account number, savings account number, checking account number, or credit card number of a debtor or alleged debtor.
(g) Qualified third-party professional means any of the following:
(1) A domestic violence counselor, as defined in Section 1037.1 of the Evidence Code.
(2) A sexual assault counselor, as defined in Section 1035.2 of the Evidence Code.
(3) A Court-Appointed Special Advocate, as defined in Section 101 of the Welfare and Institutions Code.
(4) A court-appointed attorney, as defined in subdivision (e) of Section 317 of the Welfare and Institutions Code.
(5) A board certified psychiatrist or psychologist.
(6) A licensed marriage and family therapist.
(7) A licensed professional clinical counselor.
(8) A licensed clinical social worker.
(9) A social worker or caseworker employed by an adult protective service agency for the purposes described in Chapter 13 (commencing with Section 15750) of Part 3 of Division 9 of the Welfare and Institutions Code.
(10) A social worker who has completed the child welfare training program described in Article 2 (commencing with Section 16205) of Chapter 3 of Part 4 of Division 9 of the Welfare and Institutions Code.
1798.97.2. (a) (1) An alleged debtor may bring an action against an alleged creditor to establish that the alleged creditors claim arises from a coerced debt.(2) In an action brought by an alleged creditor to recover a claim against the alleged debtor, the alleged debtor may file a cross-complaint to establish that the claim is a coerced debt.(b) (1) At least 30 days before commencing an action or filing a cross-complaint described by subdivision (a), the alleged debtor shall provide the alleged creditor with written notice of the intent to file the action or cross-complaint, which shall include a description of claim at issue. (2) The alleged debtor shall not commence an action or file a cross-complaint described in subdivision (a) if the alleged creditor ceases all efforts to collect on the claim identified in the written notice provided pursuant to paragraph (1) before the expiration of the 30-day period.(3) For purposes of this subdivision, the 30-day period shall begin to run when the alleged creditor receives the notice provided under paragraph (1). (c) If the alleged debtor establishes by a preponderance of the evidence in an action brought or cross-complaint filed pursuant to subdivision (a) that the claim is a coerced debt, the court shall award all of the following relief:(1) A declaratory judgment that the alleged debtor is not obligated to the creditor on the claim.(2) An injunction prohibiting the creditor from holding or attempting to hold the alleged debtor personally liable on the claim and prohibiting the creditor from enforcing a judgment related to the claim against the alleged debtor.(3) An order dismissing any cause of action brought by the creditor to enforce or collect on the claim from the alleged debtor.(d) An alleged debtor who files unmeritorious motions, pleadings, or other papers, conducts unnecessary discovery, or engages in other tactics that are frivolous or solely intended to cause unnecessary delay against an alleged creditor shall be liable for the alleged creditors attorneys fees and costs in defending the lawsuit.(e) An alleged creditor may collect against any appropriate person or entity other than the alleged debtor.(f) Information regarding a secured or unsecured consumer debt documented to be a coerced debt shall be deemed incomplete or inaccurate for purposes of subdivision (a) of Section 1785.25.
1798.97.2. (a) (1) An alleged debtor may bring an action against an alleged creditor to establish that the alleged creditors claim arises from a coerced debt.
(2) In an action brought by an alleged creditor to recover a claim against the alleged debtor, the alleged debtor may file a cross-complaint to establish that the claim is a coerced debt.
(b) (1) At least 30 days before commencing an action or filing a cross-complaint described by subdivision (a), the alleged debtor shall provide the alleged creditor with written notice of the intent to file the action or cross-complaint, which shall include a description of claim at issue.
(2) The alleged debtor shall not commence an action or file a cross-complaint described in subdivision (a) if the alleged creditor ceases all efforts to collect on the claim identified in the written notice provided pursuant to paragraph (1) before the expiration of the 30-day period.
(3) For purposes of this subdivision, the 30-day period shall begin to run when the alleged creditor receives the notice provided under paragraph (1).
(c) If the alleged debtor establishes by a preponderance of the evidence in an action brought or cross-complaint filed pursuant to subdivision (a) that the claim is a coerced debt, the court shall award all of the following relief:
(1) A declaratory judgment that the alleged debtor is not obligated to the creditor on the claim.
(2) An injunction prohibiting the creditor from holding or attempting to hold the alleged debtor personally liable on the claim and prohibiting the creditor from enforcing a judgment related to the claim against the alleged debtor.
(3) An order dismissing any cause of action brought by the creditor to enforce or collect on the claim from the alleged debtor.
(d) An alleged debtor who files unmeritorious motions, pleadings, or other papers, conducts unnecessary discovery, or engages in other tactics that are frivolous or solely intended to cause unnecessary delay against an alleged creditor shall be liable for the alleged creditors attorneys fees and costs in defending the lawsuit.
(e) An alleged creditor may collect against any appropriate person or entity other than the alleged debtor.
(f) Information regarding a secured or unsecured consumer debt documented to be a coerced debt shall be deemed incomplete or inaccurate for purposes of subdivision (a) of Section 1785.25.
1798.97.3. A court shall have continuing jurisdiction over an action or cross-complaint filed pursuant to this title in order to provide for the joinder of related causes of action based on the contention that an alleged creditors claim against an alleged debtor is for a coerced debt, and the joinder of further defendants based on the contention that their claims against the alleged debtor are coerced debts, regardless of whether a final judgment has been entered as to any defendant. The courts continuing jurisdiction shall terminate 10 years after filing of the original action unless the court, before that date, finds good cause to extend jurisdiction over the matter.
1798.97.3. A court shall have continuing jurisdiction over an action or cross-complaint filed pursuant to this title in order to provide for the joinder of related causes of action based on the contention that an alleged creditors claim against an alleged debtor is for a coerced debt, and the joinder of further defendants based on the contention that their claims against the alleged debtor are coerced debts, regardless of whether a final judgment has been entered as to any defendant. The courts continuing jurisdiction shall terminate 10 years after filing of the original action unless the court, before that date, finds good cause to extend jurisdiction over the matter.
1798.97.4. An action brought pursuant to this title or any joinder of a defendant pursuant to Section 1798.82 may be brought within four years of the date the alleged debtor knew or, in the exercise of reasonable diligence should have known, of the existence of facts which would give rise to the bringing of the action against, or joinder of, the defendant.
1798.97.4. An action brought pursuant to this title or any joinder of a defendant pursuant to Section 1798.82 may be brought within four years of the date the alleged debtor knew or, in the exercise of reasonable diligence should have known, of the existence of facts which would give rise to the bringing of the action against, or joinder of, the defendant.
1798.97.5. (a) This title does not apply to a transaction subject to the Song-Beverly Credit Card Act of 1971 (Title 1.3 (commencing with Section 1747)).(b) A creditor may use all rights and remedies against a person who caused a coerced debt to be incurred or against a person who used or possessed money, goods, services, or property obtained through a coerced debt.
1798.97.5. (a) This title does not apply to a transaction subject to the Song-Beverly Credit Card Act of 1971 (Title 1.3 (commencing with Section 1747)).
(b) A creditor may use all rights and remedies against a person who caused a coerced debt to be incurred or against a person who used or possessed money, goods, services, or property obtained through a coerced debt.