H.F. 4347 Summary

• Defines "coerced debt" as debt incurred through unauthorized use of personal information, force, intimidation, fraud, deception, coercion, or economic abuse, excluding secured debt.

• Prohibits any person from causing another to incur coerced debt and establishes civil liability for violators to pay the debt amount plus creditor's reasonable attorney fees and costs.

• Requires debtors to notify creditors by certified mail with documentation (police report, FTC identity theft report, court order, or sworn certification) that debt is coerced and request cessation of collection activity; creditors must respond within 30 days.

• Entitles debtors who prove coerced debt by preponderance of evidence to declaratory judgment, injunction against collection, or dismissal of enforcement actions; courts must issue judgment against the person who caused the coerced debt.

• Creates presumption that debt is coerced if the person who caused it was criminally convicted, entered a guilty plea, Alford plea, or received stay of adjudication for domestic abuse, harassment, or trafficking violations; all provisions effective January 1, 2025.