NM HB313

Establishes legal protections for victims of human trafficking, domestic violence, sexual assault, stalking, or elder abuse who were forced to incur debt through identity theft, fraud, duress, coercion, or non-consensual use of their personal information

Allows debtors to submit a written "statement of coerced debt" to creditors with supporting documentation such as police reports, court orders, or verification from qualified third parties (law enforcement, attorneys, healthcare providers, social workers, or clergy)

Requires creditors within 10 business days of receiving a valid statement to suspend collection attempts, cease garnishments, return payments made by the debtor, notify credit reporting agencies to delete the debt information, and refrain from selling the debt

Holds perpetrators of coerced debt civilly liable to both the creditor for the debt amount and to the debtor for any payments made or costs incurred related to the coerced debt

Provides civil remedies including actual damages, up to $5,000 per violation (indexed for inflation), court costs, attorney fees, and punitive damages for willful noncompliance; requires the Financial Institutions Division to publish model forms within 180 days