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HB 2344

An Act amending Title 12 (Commerce and Trade) of the Pennsylvania Consolidated Statutes, providing for protections against coerced debt; and imposing duties on the Administrative Office of Pennsylvania Courts.

2025-2026 Regular Session Introduced by Scott Conklin and 3 co-sponsors

The bill creates a formal process to identify, halt, and remedy coerced debts, requiring creditors to pause actions and courts to resolve disputes with possible debt relief.

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Bill Summary · HB 2344

Overview

HB 2344 (2025-2026 Session, Pennsylvania) proposes a new Chapter 59 within Title 12 (Commerce and Trade) to create protections against coerced debt and establish a formal dispute process. The bill would also impose duties on the Administrative Office of Pennsylvania Courts (AOPC) and the Treasury Department to support implementation.

Main purpose and intent

  • To provide a legal framework for identifying, disputing, and resolving debts incurred under coercion, abuse, fraud, or misuse of personal information.
  • To offer a streamlined process for debtors to challenge coerced debts and for creditors to determine whether a debt qualifies as coerced debt.
  • To limit creditor enforcement actions and restore or preserve debtor rights when a debt is found to be coerced.

Key provisions and changes

  • Scope and definitions (Chapter 59, Sec. 5901–5902):

    • Defines “coerced debt,” “debtor,” “creditor,” and related terms.
    • Includes debt incurred due to domestic violence offenses, fraud, duress, intimidation, misinformation, or nonconsensual use of personal identifying information.
    • Expands the scope to include agents, employees, and third-party collectors acting on behalf of the creditor.
    • Excludes debts secured by real property from the definition of debt in this chapter.

  • Petition process (Sec. 5903):

    • The Treasury Department (referred to as the ADMINISTRATIVE OFFICE) may develop a coerced debt dispute petition.
    • The petition may require identifying information, a statement that the debt is coerced or not voluntarily authorized, details about how the debt was incurred, documentation from a qualified third party, and contact preferences.
    • Petition may be posted publicly by the Administrative Office.

  • Notice and amendments (Sec. 5904–5905):

    • Debtors must send the petition to the creditor.
    • If the petition is incomplete, creditors may request an amended petition within 10 business days.

  • Creditor determination (Sec. 5906):

    • Creditors must determine within 10 business days whether the debt qualifies as coerced debt.
    • If deemed coerced:
    • Stop collection efforts.
    • Cease litigation and garnishment related to the coerced debt.
    • Return payments and request deletion of related consumer report entries.
    • Notify the debtor and, if applicable, the debt owner.
    • If not deemed coerced: provide reasons and inform the debtor of the right to seek a court review (Section 5907).

  • Court review and relief (Sec. 5907):

    • Debtors may file a challenge in court within two years of the creditor’s determination.
    • If the court finds coercion, it may order the actions outlined in 5906 and may grant attorney fees.
    • If a perpetrator is identified, the court may require them to pay the coerced debt and award fees.
    • Creditors may pursue collection actions against the perpetrator within two years of a positive determination.

  • Effective date:

    • The act takes effect 90 days after enactment.

Who is affected

  • Debtors who allege that their debt was coerced or incurred via abuse, coercion, or misuse of personal information.
  • Creditors and their collectors, including agents and third-party collectors.
  • The Administrative Office of Pennsylvania Courts (AOPC) and the Treasury Department (for petition development and administration).
  • Consumer reporting agencies (through required deletions if a debt is found coerced).

Procedural and timeline aspects

  • Petition development and posting by the Administrative Office.
  • Debtors file petitions; creditors have up to 10 business days to request amendments.
  • Creditor determination window: 10 business days to decide coerced vs. not coerced.
  • If coerced: cessation of collection and possible relief; if not: court review pathway opens, within two years of determination.

This bill aims to provide a formal mechanism to address coerced debts and protect consumers from improper debt collection practices while outlining clear duties for creditors and related state offices.

Compiled from official sources — confirm details with the bill’s official record.

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