Bill Text: FL S0128 | 2023 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Contacting Consumer Debtors

Spectrum: Bipartisan Bill

Status: (Failed) 2023-05-05 - Died in Fiscal Policy [S0128 Detail]

Download: Florida-2023-S0128-Introduced.html

---

       Florida Senate - 2023                                     SB 128
       
       
        
       By Senator Rodriguez
       
       
       
       
       
       40-00123A-23                                           2023128__
    1                        A bill to be entitled                      
    2         An act relating to contacting consumer debtors;
    3         amending s. 559.565, F.S.; specifying that persons who
    4         violate specified provisions of law are subject to
    5         sanctions in the same manner as any other consumer
    6         debt collector; creating s. 559.721, F.S.; defining
    7         the term “creditor”; prohibiting creditors from
    8         contacting debtors regarding specified types of debt
    9         under certain circumstances; providing applicability;
   10         providing construction; amending s. 559.725, F.S.;
   11         requiring the Office of Financial Regulation of the
   12         Financial Services Commission to inform and furnish
   13         relevant information to the appropriate regulatory
   14         body of the state, the Federal Government, or The
   15         Florida Bar if a person has been named in a certain
   16         consumer complaint alleging specified violations of
   17         law; amending s. 559.77, F.S.; authorizing debtors to
   18         bring civil actions against creditors who violate the
   19         act; specifying that violators are liable for
   20         specified damages, costs, and fees; providing an
   21         effective date.
   22          
   23  Be It Enacted by the Legislature of the State of Florida:
   24  
   25         Section 1. Subsection (2) of section 559.565, Florida
   26  Statutes, is amended to read:
   27         559.565 Enforcement action against out-of-state consumer
   28  debt collector.—The remedies of this section are cumulative to
   29  other sanctions and enforcement provisions of this part for any
   30  violation by an out-of-state consumer debt collector, as defined
   31  in s. 559.55(11).
   32         (2) A person, whether or not exempt from registration under
   33  this part, who violates s. 559.72 or s. 559.721 is subject to
   34  sanctions the same as any other consumer debt collector,
   35  including imposition of an administrative fine. The registration
   36  of a duly registered out-of-state consumer debt collector is
   37  subject to revocation or suspension in the same manner as the
   38  registration of any other registrant under this part.
   39         Section 2. Section 559.721, Florida Statutes, is created to
   40  read:
   41         559.721 Prohibitions on contacting debtors who are victims
   42  of certain crimes.—
   43         (1) As used in this section, the term “creditor” means a
   44  person required to be registered under s. 559.553.
   45         (2) In collecting consumer debts, a creditor may not:
   46         (a) Contact a debtor regarding a debt that arises from
   47  documented elder and economic abuse.
   48         1. Documented elder and economic abuse occurs when:
   49         a. The debtor, or a person with fiduciary responsibility to
   50  the debtor, has alleged in a police report that the debtor has
   51  been the victim of elder abuse by a specified alleged
   52  perpetrator; and
   53         b. The debtor, or a person with fiduciary responsibility to
   54  the debtor, provides the creditor with a signed affidavit,
   55  swearing under penalty of perjury that the following are true:
   56         (I) The debtor was the victim of elder abuse as documented
   57  in a police report;
   58         (II) As a result of the alleged abuse, the debtor was
   59  compelled to incur debt or was provided credit that the debtor
   60  would not otherwise have incurred in the absence of the abuse,
   61  including, but not limited to, the debtor’s identity being
   62  stolen; and
   63         (III) The debt that is the subject of the creditor’s
   64  contact with the debtor was incurred solely because of elder
   65  abuse.
   66         2. The prohibition in this paragraph applies:
   67         a. For 2 years after the affidavit under sub-subparagraph
   68  1.b. is provided to the creditor; or
   69         b. Indefinitely, if the perpetrator has been convicted of a
   70  crime relating to elder abuse arising from the conduct
   71  referenced in the police report.
   72         (b) Contact a debtor regarding a debt that arises from
   73  documented human trafficking and economic abuse.
   74         1. Documented human trafficking and economic abuse occur
   75  when:
   76         a. Official documentation as defined in s. 943.0583 shows
   77  at least one incident of human trafficking has occurred in which
   78  the debtor is listed as a victim or in which the debtor received
   79  relocation assistance under s. 960.196; and
   80         b. The debtor provides the creditor with a signed
   81  affidavit, swearing under penalty of perjury that the following
   82  are true:
   83         (I) The debtor was the victim of human trafficking as
   84  documented in a police report or there has been a determination
   85  that the debtor should receive relocation assistance under s.
   86  960.196;
   87         (II) As a result of human trafficking, the debtor was
   88  compelled to incur debt or was provided credit that the debtor
   89  would not otherwise have incurred in the absence of the abuse,
   90  including instances in which the debtor’s identity has been
   91  stolen; and
   92         (III) The debt that is the subject of the creditor’s
   93  contact with the debtor was incurred solely because of and
   94  during the period of human trafficking.
   95         2. The prohibition in this paragraph applies:
   96         a. For 2 years after the affidavit under sub-subparagraph
   97  1.b. is provided to the creditor; or
   98         b. Indefinitely, if the perpetrator has been convicted of a
   99  crime relating to human trafficking as alleged in the police
  100  report.
  101         (c) Contact a debtor regarding debts that arise from
  102  documented identity theft. Documented identity theft occurs
  103  when:
  104         1. The debtor provides the creditor with a Federal Trade
  105  Commission identity theft report stating that he or she is the
  106  victim of identity theft; and
  107         2. The debtor provides the creditor with a signed
  108  affidavit, swearing that the following are true:
  109         a. The debtor was the victim of identity theft as
  110  documented in a Federal Trade Commission identity theft report;
  111         b. As a result of identity theft, the debt was incurred in
  112  the debtor’s name but in no way benefited the debtor; and
  113         c. The debt that is the subject of the creditor’s contact
  114  with the debtor was incurred solely because of identity theft.
  115         (d) Contact a debtor upon receiving notice that the debtor
  116  is protected by an injunction for protection against
  117  exploitation of a vulnerable adult under s. 825.1035.
  118         (e) Contact a debtor regarding debts that arose when the
  119  debtor was in foster care. This prohibition applies after the
  120  debtor provides the creditor with a signed affidavit, swearing
  121  under penalty of perjury that the following are true:
  122         1. The debtor was in foster care as defined in s. 39.01;
  123  and
  124         2. The debt that is the subject of the creditor’s contact
  125  with the debtor was incurred during the time when the debtor was
  126  in foster care.
  127         (3) This section may not be construed or interpreted in any
  128  manner to discharge an individual from a debt he or she may have
  129  incurred as a result of a crime.
  130         Section 3. Subsection (2) of section 559.725, Florida
  131  Statutes, is amended to read:
  132         559.725 Consumer complaints; administrative duties.—
  133         (2) The office shall inform and furnish relevant
  134  information to the appropriate regulatory body of the state or
  135  the Federal Government, or The Florida Bar in the case of
  136  attorneys, if a person has been named in a consumer complaint
  137  pursuant to subsection (3) alleging violations of s. 559.72 or
  138  s. 559.721. The Attorney General may take action against any
  139  person in violation of this part.
  140         Section 4. Subsections (1) and (2) of section 559.77,
  141  Florida Statutes, are amended to read:
  142         559.77 Civil remedies.—
  143         (1) A debtor may bring a civil action against a person
  144  violating the provisions of s. 559.72 or s. 559.721 in the
  145  county in which the alleged violator resides or has his or her
  146  principal place of business or in the county where the alleged
  147  violation occurred.
  148         (2) Any person who fails to comply with any provision of s.
  149  559.72 or s. 559.721 is liable for actual damages and for
  150  additional statutory damages as the court may allow, but not
  151  exceeding $1,000, together with court costs and reasonable
  152  attorney attorney’s fees incurred by the plaintiff. In
  153  determining the defendant’s liability for any additional
  154  statutory damages, the court shall consider the nature of the
  155  defendant’s noncompliance with s. 559.72 or s. 559.721, the
  156  frequency and persistence of the noncompliance, and the extent
  157  to which the noncompliance was intentional. In a class action
  158  lawsuit brought under this section, the court may award
  159  additional statutory damages of up to $1,000 for each named
  160  plaintiff and an aggregate award of additional statutory damages
  161  up to the lesser of $500,000 or 1 percent of the defendant’s net
  162  worth for all remaining class members; however, the aggregate
  163  award may not provide an individual class member with additional
  164  statutory damages in excess of $1,000. The court may award
  165  punitive damages and may provide such equitable relief as it
  166  deems necessary or proper, including enjoining the defendant
  167  from further violations of this part. If the court finds that
  168  the suit fails to raise a justiciable issue of law or fact, the
  169  plaintiff is liable for court costs and reasonable attorney
  170  attorney’s fees incurred by the defendant.
  171         Section 5. This act shall take effect July 1, 2023.