Bill Summary: HB06173

• Establishes new definitions for "debt buyer" (entities purchasing delinquent debt for collection) and "original creditor" (the entity that initially extended credit to the consumer).

• Prohibits debt buyers from suing or collecting on debts when the statute of limitations has expired, without proof of ownership of the debt, or without providing written notice to the consumer debtor at least 30 days before filing suit.

• Requires debt buyers to provide specific documentation before entry of judgment, including authenticated copies of the original debt contract, evidence of unbroken chain of ownership through all assignments, and detailed itemization of all charges and fees claimed.

• Limits post-judgment interest on debt collection cases to the weekly average one-year Treasury yield rate, regardless of the rate in the original contract.

• Establishes a three-year statute of limitations for debt buyer collection actions from the date of charge-off or 180 days after last payment, whichever is later, and increases consumer damages for creditor violations to $500-$5,000 per violation.