FL S1116

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

Requires debt buyers to provide written receipts for cash payments showing creditor name, account numbers, payment amount/date, person accepting payment, and whether payment is full settlement or partial with remaining balance.

Prohibits debt buyers from collecting debts barred by statute of limitations, debts discharged in bankruptcy, or debts without valid documentation of ownership and reasonable substantiation of the debt amount through admissible evidence.

Requires debt buyers to provide debtors written notice of intent to file legal action at least 30 days before filing and to attach original contracts, assignment documentation, and itemized debt accounting to verified complaints.

Establishes statutory damages of $1,000 or the purported debt (whichever is smaller) per violation, or 1 percent of debt buyer's net worth or $500,000 for class actions, plus actual damages, punitive damages, attorney's fees, and equitable relief; effective July 1, 2011.