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Bill

Bill

S 4271

Relates to licensing consumer debt collectors

2025 Regular Session Introduced by Robert Jackson and 1 co-sponsor

Bill S 4271 requires all consumer debt collectors to obtain a license, enhancing protections for consumers and ensuring fair practices in debt collection.

REFERRED TO BANKS
0
WeVote Research Nonpartisan
Bill Summary · S 4271

Summary of Bill S 4271: Licensing Consumer Debt Collectors

Purpose and Intent

Bill S 4271 aims to establish a regulatory framework for the licensing of consumer debt collectors. The intent of the bill is to enhance consumer protection by ensuring that debt collectors operate under a set of standardized regulations, thereby promoting fair practices in the debt collection industry.

Key Provisions

  • Licensing Requirement: The bill mandates that all consumer debt collectors must obtain a license to operate legally. This requirement is designed to ensure that only qualified individuals and entities engage in debt collection activities.

  • Regulatory Oversight: The bill proposes the establishment of a regulatory body responsible for overseeing the licensing process, setting standards for conduct, and enforcing compliance among licensed debt collectors.

  • Consumer Protections: Enhanced protections for consumers are included, such as:

    • Clear disclosure of debt information.
    • Prohibition of deceptive practices in debt collection.
    • Mechanisms for consumers to dispute debts and seek redress.

  • Penalties for Non-Compliance: The bill outlines penalties for debt collectors who fail to comply with licensing requirements or engage in prohibited practices, including fines and potential revocation of licenses.

Affected Parties

  • Debt Collectors: All individuals and businesses involved in consumer debt collection will be required to obtain a license, impacting their operational practices and compliance costs.

  • Consumers: The bill is designed to protect consumers from unfair debt collection practices, providing them with more rights and clearer avenues for dispute resolution.

  • Regulatory Agencies: New responsibilities will be placed on regulatory agencies tasked with overseeing the licensing and compliance of debt collectors.

Legislative Timeline

  • Introduced: February 03, 2025
  • Passed Senate: June 11, 2025
  • Delivered to Assembly: June 11, 2025
  • Referred to Banks: June 11, 2025
  • Advanced to Third Reading: June 04, 2025
  • Reported and Committed to Finance: May 05, 2025
  • Initial Referral to Banks: February 03, 2025

Related Bills

This bill is related to several prior-session bills, including:
- S 190
- S 219
- S 1439
- S 7071
- S 7099
- S 2343
- S 3121
- S 666
- A 5537 (companion bill)

Conclusion

Bill S 4271 represents a significant step towards regulating the consumer debt collection industry, aiming to protect consumers and ensure ethical practices among debt collectors. As it progresses through the legislative process, stakeholders will be closely monitoring its implications for both consumers and the debt collection industry.

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

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