HB 1399 - Debt Buyers

• Defines "debt buyer" as a creditor engaged in purchasing consumer debt for collection, whether collecting directly, through debt collectors, or through attorneys.

• Requires debt buyers to provide receipts for cash payments showing creditor name, account numbers, amount, date, person accepting payment, and whether payment constitutes full settlement or leaves a balance.

• Prohibits debt buyers from suing or collecting on debts without valid ownership documentation, reasonable substantiation of the debt amount, and written notice to debtor at least 30 days before filing suit.

• Requires debt buyers to attach to complaints original contracts, assignment chains establishing ownership, and properly authenticated business records including debt origination date, account number, original creditor, itemized charges and payments, and last payment date.

• Establishes liability for debt buyer violations including statutory damages of lesser of purported debt or $1,000 per violation (or 1 percent of net worth capped at $500,000 for class actions), plus actual damages, punitive damages, attorney's fees, and equitable relief, with 2-year statute of limitations.