Massachusetts H1275 aims to ensure fairness in consumer debt collection by limiting interest rates, protecting earnings, and setting time limits for.

The bill establishes stricter rules for consumer debt collection in Massachusetts. It limits interest rates on consumer debts to a fixed rate of 3% per annum for judgments entered after January 1, 2026. It also sets a 5-year limit for commencing actions to collect consumer debts from the date the cause of action accrues. The bill protects a portion of a consumer's earnings from garnishment and exempts income from child support payments from collection. Employers are prohibited from taking adverse actions against employees or refusing to hire individuals due to consumer debt garnishments.

Massachusetts H1275 aims to ensure fairness in consumer debt collection by limiting interest rates, protecting earnings, and setting time limits for.

The bill establishes stricter rules for consumer debt collection in Massachusetts. It limits interest rates on consumer debts to a fixed rate of 3% per annum for judgments entered after January 1, 2026. It also sets a 5-year limit for commencing actions to collect consumer debts from the date the cause of action accrues. The bill protects a portion of a consumer's earnings from garnishment and exempts income from child support payments from collection. Employers are prohibited from taking adverse actions against employees or refusing to hire individuals due to consumer debt garnishments.