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HD 1897

An Act relative to the collection of debt

194th Legislature (2025-2026) Introduced by Mike Finn

This bill reforms debt collection practices, prohibits aggressive tactics, empowers consumers to dispute debts, and establishes licensing and oversight of collectors.

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Bill Summary · HD 1897

Summary of HD 1897 - An Act relative to the collection of debt

Overview

This proposed bill, introduced on November 29, 2025, aims to reform debt collection practices in the state. The main goals are to increase protections for consumers, impose stricter regulations on debt collectors, and establish new guidelines for the collection of consumer debts.

Key Provisions

  • Debt Collection Practices: The bill would prohibit certain aggressive and unfair debt collection tactics, such as repeated phone calls, threats of legal action, and contacting consumers at work. It would also require debt collectors to provide more detailed information about the debt and the consumer's rights.
  • Consumer Protections: The legislation would give consumers the right to request debt validation, dispute debts, and obtain a copy of their credit report for free. It would also limit the amount of time debt collectors can attempt to collect on old debts.
  • Licensing and Oversight: The bill would establish a licensing system for debt collectors operating in the state and empower a state regulatory agency to investigate complaints and take enforcement action against violators.
  • Consumer Education: The proposed law would require the state to develop and distribute educational materials to inform consumers about their rights and responsibilities when dealing with debt collectors.

Impact

This bill would primarily affect consumers who have outstanding debts and are contacted by debt collectors. By restricting certain collection practices and empowering consumers, the legislation aims to reduce abusive and deceptive tactics that can harm individuals' financial well-being and credit.

The new licensing and oversight requirements would also impact debt collection agencies operating in the state, who would need to comply with the new regulations or risk penalties.

Timeline

If passed, the key provisions of the bill would go into effect 6 months after the law is signed. The state regulatory agency would have an additional 3 months to develop the necessary rules and procedures to implement the new debt collection framework.

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

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