MA H1694

Creates new Chapter 258G establishing civil legal remedies for victims of "debt incurred through economic abuse," defined as debt resulting from identity theft, fraud, duress, coercion, or unauthorized use of personal information by family members, household members, or caretakers

Requires creditors to cease all collection attempts, dismiss pending lawsuits, return payments made, and request deletion of credit report information within 10 business days after receiving a debtor's statement and adequate documentation of economic abuse

Establishes that debtors are not liable for debt incurred through economic abuse and may raise it as a defense in any legal proceeding; creditors bear the burden of proof if they challenge the claim in court

Provides civil penalties against non-compliant creditors including actual damages, up to $5,000 in additional damages for individuals (indexed for inflation), up to $500,000 for class actions, attorney's fees, and punitive damages for willful violations

Effective date of January 1, 2026; requires Massachusetts Attorney General to publish Model Form A-1 in English and Spanish within 180 days of enactment