AN ACT CONCERNING COERCED DEBT.

This bill establishes a legal framework to address debts incurred by victims of domestic violence under duress, intimidation, or threats. It defines a "coerced debt" as any unsecured personal debt taken out by an individual who is a victim of domestic violence and was forced into the obligation through coercion. Under the new law, debt collectors and buyers must immediately stop all collection efforts once they receive specific documentation, such as police reports, restraining orders, or certified statements from qualified professionals like counselors or attorneys, confirming the debt was coerced. The legislation also imposes civil liability on individuals who cause others to incur such debts, holding them responsible for repaying the amount and covering associated legal fees. These protections apply to debts incurred on or after January 1, 2025, and are designed to prevent further harassment of victims while they seek to resolve the underlying abuse.