Senate Bill 511 Summary

• Requires debt buyers to have access to valid documentation proving ownership of a debt and provide reasonable verification including the original creditor name, debtor's original account number, and a copy of the contract or charge-off statement before collecting on a debt.

• Mandates debt buyers provide debtors with written notice at least 30 days before filing a legal action, including the debt buyer's name and contact information, original creditor name, original account number, and an itemized accounting of amounts owed.

• Specifies that for charged-off debts, itemized accounting must include the charge-off balance, post charge-off interest, post charge-off fees, and post charge-off payments or credits.

• Requires debt buyers to include conspicuous notices in written communications regarding time-barred debts, informing consumers that the debt is too old to sue on and may or may not be reported to credit agencies depending on the obsolescence date under federal law.

• Adds a new section allowing consumers to notify debt collectors in writing to cease further communication, with limited exceptions for notices about termination of efforts or specified remedies; effective October 1, 2015.