HB 1219

Abstract

Amends the Collection Agency Act. Provides that in any action initiated by a debt buyer or debt collector to enforce the collection of a debt shall include (i) a copy of the contract or other writing evidencing the original debt, which must contain a signature of the defendant and (ii) a copy of the assignment or other writing establishing that the plaintiff is the owner of the debt. Provides that in any action brought by a debt buyer or debt collector to enforce the collection of a debt, the plaintiff shall affirmatively state in his or her complaint that the claim is within the statutory period of limitation for the cause of action. Permits that any aggrieved person may bring a civil action to enforce this Act for actual damages sustained by a person as a result of the defendant's failure to adhere to the provisions of this Act and an injunction prohibiting further violations. Provides that in an action brought by an individual, additional damages, as the court may allow, shall not exceed $5,000 per violation. Provides that in an action brought by class action, the court may allow the amount for each named plaintiff as could be recovered if the action was brought as an individual, and the amount as for all other class members, without regard to a minimum individual recovery, shall not exceed $1,000,000. Permits the recovery of attorney's fees and costs if the court finds an action was brought in bad faith and for the purposes of harassment. Provides guidelines for the court to consider in determining damages for a violation of this Act. Provides that a debt collector may not be held liable in any action if the debt collector shows by a preponderance of evidence that the violation was not intentional and resulted from a bona fide error notwithstanding the maintenance of procedures reasonably adapted to avoid any such error. Makes other changes.