SB29 - Family Financial Protection Act Summary

• Requires debt buyers and debt collectors to possess verified documentation before collecting, including proof of indebtedness, original creditor identity, debt date, and itemized fees; prohibits collection without copy of original contract or evidence of consumer liability.

• Establishes a uniform 3-year statute of limitations for consumer debt collection actions; makes statute non-waivable and extinguishes debt and collection rights after expiration.

• Mandates 30-day advance written notice before filing legal action; requires attached documentation at complaint including original contract, itemized accounting, and chain of ownership for debt buyers; restricts default judgments without proper notice and allows debtors extended time to set aside judgments.

• Provides broad exemptions from debt collection including household goods, motor vehicles ($10,000-$20,000), tools of trade, child support, public assistance, insurance proceeds, educational savings, and homestead property based on median house price; caps wage garnishment at 10-15% of disposable income.

• Prohibits certain consumer contract provisions including choice-of-law, forum selection, jury trial waivers, wage assignments, and waiver of consumer protections; limits creditor attorney's fees to 15% of debt and restricts post-judgment interest to federal Treasury yield rate.