Private Organizations
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The Model Family Financial Protection Act (Rev. Nov. 2023) has two titles—the first deals with consumer contract and collection protections and the second with property exempt from creditors. Among other provisions, the first title limits terms that can be found in consumer form contracts, establishes verification and disclosure requirements for debt collectors, limits collector recording of calls with consumers, and restricts imprisonment for debt. The title establishes a three-year statute of limitations for collection of consumer debt, and collection lawsuits must include certain information in a notice to the consumer and in the legal complaint. Abusive requests to the consumer for admissions are limited and the creditor must provide certain information before obtaining n a default judgment. Pre- and post-judgment interest is limited.
The second title establishes a detailed set of consumer exemptions from creditor post-judgment seizure of consumer personal property, wage garnishment, and foreclosure on the consumer’s home. Dollar amounts are adjusted for inflation, waivers are limited, procedures are established for seizure of property, and requirements are set out for traceable proceeds of exempt property.
