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S 2537

Relates to eligibility for classification as permanent total disability

2025 Regular Session Introduced by Jabari Brisport and 4 co-sponsors

Establishes MA Chapter 93M to curb aggressive wage garnishment, shield earnings/pensions, mandate hardship exemptions, and tighten rules for debt buyers/collectors.

SUBSTITUTED BY A2748
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Bill Summary · S 2537

Summary — S.2537 (Debt Collection Fairness Act / proposed Chapter 93M)

Short summary
S.2537 (filed as Senate No. 2537) would create a new Massachusetts statutory chapter, the “Debt Collection Fairness Act” (proposed Chapter 93M), to restrict certain debt-collection tactics and increase protections for consumers’ earnings, pensions and employment. The bill defines covered terms (consumer, creditor, debt buyer, debt collector, execution, exempt, etc.) and sets new limits and procedures for wage attachments/garnishments, trustee process, and related employer and creditor conduct.

Main purpose and intent

  • Protect low- and middle-income consumers from aggressive or overly broad wage garnishment and seizure practices.
  • Standardize definitions and procedures for debt buyers and debt collectors.
  • Provide courts with a streamlined hardship exemption process to prevent undue financial hardship from collection actions.

Key provisions and changes

  • Definitions: Establishes terms such as “consumer debt,” “debt buyer,” “debt collector,” “execution,” “exempt,” and “earnings” in a new Chapter 93M.
  • Wage exemption floor: If a consumer’s earnings are attached to satisfy a consumer-debt judgment, the bill exempts from garnishment the greater of:
    • 90% of the debtor’s gross weekly wages; or
    • “65 times” the greater of (a) the federal minimum hourly wage under 29 U.S.C. §206(a)(1) or (b) the Massachusetts state minimum wage (section 1 of chapter 151) in effect at the time.
    • Exemption is adjusted pro rata for pay periods longer than one week.
  • Hardship process: A debtor may file a court-prepared “claim of undue financial hardship” form to request additional wage exemptions; the court must hold a hearing as soon as practicable to determine the amount exempted.
  • Priority of multiple attachments: When multiple attachments are served on a trustee, the earliest-served order has priority; lower-priority orders cannot garnish if earlier orders consume available garnishable earnings.
  • Geographic scope: Protections apply when the consumer’s physical place of employment is in Massachusetts, even if an employer’s corporate offices are out-of-state.
  • Exceptions: Does not alter established federal/state rules for garnishment to satisfy child support, alimony or maintenance; federal limits for pension attachments remain applicable.
  • Pension protections: Amounts held by a trustee for a defendant in a pension (per chapter 246 definitions) are reserved and exempt from attachment for consumer-debt collection.
  • Employment protections: Employers are prohibited from taking adverse employment actions or refusing to hire because of one or more garnishments for consumer debts or because of administrative burdens that garnishments impose.

(Note: the provided text is truncated; subsequent sections in the bill may contain additional prohibitions, definitions or enforcement mechanisms.)

Who is affected

  • Consumers (debtors) — greater protection of wages and pensions; streamlined hardship relief.
  • Creditors, debt buyers and debt collectors — reduced ability to collect by wage execution; possible changes to collection strategies.
  • Employers and trustees — new duties and protections regarding garnishments and pension funds.
  • Courts — required to provide forms, hearings and apply the new exemption standards.

Procedural status and timeline highlights

  • Drafts and committee activity: Reported by Financial Services committee (6/20/2025); favorably reported and referred to Senate Ways & Means (6/23/2025). Committee recommended passage with amendment and substituted a new draft (S2551) (7/10/2025).
  • Substitution: The bill was substituted by A2748 (listed as SUBSTITUTED BY A2748 on 6/10/2025). Additional actions show readings and referrals through July 2025.
  • Sponsors (as listed): Jessica Ramos (primary), Robert Jackson, Christopher Ryan, Shelley Mayer, Jabari Brisport.

Potential impacts and implementation considerations

  • Likely to reduce the share of wages available to creditors via garnishment and may lower recoveries for some consumer debts.
  • Could shift collections toward other remedies (settlements, litigation, liens) or reduce purchases of charged-off debt.
  • Requires courts to implement a hardship-claim form and schedule hearings promptly, and will impose new compliance obligations on employers, trustees and collectors.
  • Administrative and enforcement details (penalties, private right of action, regulators overseeing compliance) are not shown in the truncated text and may be addressed in the substituted companion A2748.

Note: The text provided is truncated and the bill was substituted by companion/house language (A2748). Readers should consult the full, latest text of A2748 and legislative reports for final enacted language and any amendments.

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

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