Senate Bill 946 Summary

• Adds definition of "debt buyer" to regulate entities that purchase delinquent consumer debt and collect it themselves, through affiliates, or via third parties.

• Expands prohibited collection practices to include debt buyers attempting collection without valid documentation of ownership and reasonable verification that the debtor owes the specific debt amount claimed.

• Requires debt buyers to provide consumers copies of actual business records within 20 days of request, including original creditor name, debtor information, account number, signed contracts, and itemized accounting of amounts claimed.

• Establishes new written notice requirement within 5 days of initial contact with consumer, including debt amount, creditor name, original creditor if different, and dispute procedures; consumers can dispute debt validity within 30 days and collection must cease until verification is provided.

• Increases civil penalties for violations from $500 to $1,000 per violation; misdemeanor penalties for recurring willful violations include fines up to $5,000 for first offense or up to $10,000 and 1 year imprisonment for subsequent offenses.