Connecticut House Bill HB06173

Connecticut 2013 Regular Session

• Introduced: 1/28/13
• Refer: 1/28/13
• Refer: 2/27/13
• Report Pass: 3/14/13
• Refer: 3/25/13
• Report Pass: 4/2/13
• Refer: 4/22/13
• Report Pass: 4/24/13

Caption

An Act Concerning The Reform Of Debt Collection Practices.

Impact

If passed, HB 6173 would significantly impact state laws governing debt collection by repealing and amending existing statutes related to creditor behaviors and debt recovery processes. The bill explicitly outlines the obligations of debt buyers to provide proof of ownership of debts and relevant documentation before pursuing legal action against consumers. These changes aim to create a more transparent environment for debt collections and ensure that consumers have access to appropriate legal defenses if they are pursued for debts they may not owe or for which collection is legally barred.

Summary

House Bill 6173 aims to reform debt collection practices in the state, emphasizing consumer protection against abusive and misleading practices from creditors and debt buyers. The bill introduces regulations that prevent creditors from using harmful tactics in debt collection, ensuring that consumers are not harassed or misled regarding their debts. With a clear definition of terms such as 'debt buyer' and 'consumer debtor,' HB 6173 establishes a legal framework for debts that occur from consumer transactions, offering vital protections to individuals in financial distress.

Sentiment

The sentiment surrounding the bill appears to be largely positive among consumer advocacy groups and those who prioritize consumer rights. Proponents argue that the bill would curtail abusive practices that have become prevalent in the debt collection industry, fostering a fairer environment for consumers. However, there may also be concerns from creditors and debt buyers about the potential ramifications of stricter regulations, prompting discussions concerning the balance between protecting consumers and ensuring that creditors can operate effectively in the marketplace.

Contention

Notable points of contention regarding HB 6173 include the precise definitions and implications of regulations on what constitutes acceptable debt collection practices. Critics may argue that the bill, while well-intentioned, could impose onerous restrictions on legitimate debt collection efforts, possibly leading to conflicts with federal regulations or creating challenges for creditors attempting to recoup debts. As discussions advance, stakeholders will likely debate the potential consequences of these legal reforms on both consumers facing financial difficulties and the creditors seeking repayment.