H 385 — An act relating to remedies and protections for victims of coerced debt

(10) “Statement of coerced debt” means a statement made by a debtor to a creditor orally or in writing that includes:

(A) identification of the debt, or portion of the debt alleged to be coerced debt;

(B) if available, a description of the circumstances under which the coerced debt was allegedly incurred;

BILL AS PASSED BY THE HOUSE H.385 Page 5 of 49 (C) a statement by the debtor disclosing that the debtor did not willingly authorize the use of the debtor’s name or personal information to incur such debt;

(D) any information known by the debtor, including account information or credit card information and the name of the individual in whose name such debt was incurred;

(E) the identity of the perpetrator of the coerced debt and, if known, contact information for the perpetrator, unless the debtor signs a sworn statement that disclosing such information is likely to result in abuse to the debtor or any immediate family member of the debtor;

and (F) the debtor’s preferred contact method and information such as a telephone number, email address, physical address, or safe address for either the debtor or a third party whom the debtor designates to receive information about the coerced debt., which shall be specified by the debtor in writing.

(11) “Sworn written certification” means a statement by a qualified third-party professional in the following form:

CERTIFICATION OF QUALIFIED THIRD-PARTY PROFESSIONAL I, ....................

(name of qualified third-party professional), do hereby certify under penalty of perjury as follows:

BILL AS PASSED BY THE HOUSE H.385 Page 6 of 49 1.

I am a qualified third-party professional as defined in 9 V.S.A.

§ 2495a(9) who has had in-person contact or face-to-face contact through an electronic medium with ....................

(name of debtor).

2.

Based on my professional interactions with the debtor and information presented to me in my professional capacity, I have a reasonable basis to believe ....................

(name of debtor) is a survivor of domestic abuse, domestic assault, stalking, or human trafficking and has incurred all or a portion of debt that is coerced debt.

3.

Based on my professional interactions with the debtor and on information presented to me, I have reason to believe that the circumstances under which the coerced debt was incurred are as follows:

4.

The following debts or portions of the debts have been identified to me as coerced:

I attest that the foregoing is true and correct.

(Printed name of qualified third party) (Signature of qualified third party) (Business address and business telephone) (Date) § 2495b.

COERCED DEBT PROHIBITED A person shall not cause another person to incur coerced debt.

BILL AS PASSED BY THE HOUSE H.385 Page 7 of 49 § 2495c.

CREDITOR’S CONDUCT PURSUANT TO A DEBTOR’S STATEMENT OF COERCED DEBT (a) Within 30 business days following receipt of a debtor’s statement of coerced debt, the creditor shall notify any consumer reporting agency to which the creditor furnished adverse information about the debtor that the debtor disputes the adverse information.

(b) If the consumer provides both a statement of coerced debt and adequate documentation to the creditor, the creditor shall take all of the following actions within 10 business days following receipt:

(1) Cease all attempts to collect the coerced debt from the debtor.

(2) Refrain from filing any lawsuit to collect the coerced debt or, if a collection action has already been filed, seek a continuance, abatement, or stay of proceedings against the debtor unless the creditor is challenging that the debt is not coerced debt in that action pursuant to subsection 2495d(b) of this subchapter.

(3) Cease all garnishment of funds from the debtor.

(4) Return to the debtor any payments that were made by the debtor or received as part of a garnishment of funds from the debtor on the coerced debt.

(5) Notify the debtor that it is ceasing all attempts to collect the debt from the debtor based on the debtor’s claim of coerced debt.

The notice shall BILL AS PASSED BY THE HOUSE H.385 Page 8 of 49 be provided to the debtor using the debtor’s preferred contact method.

The creditor shall inform the debtor of the option to receive the notice in writing.

(6) Contact any consumer reporting agency to which it furnished information about the debtor and the coerced debt and request they delete such information.

(7) Refrain from selling the debt or transferring it for consideration.

If the creditor does not own the debt and is collecting the debt for another, then the creditor must notify the owner of the debt that it has ceased collection activities against the debtor because the debt is coerced debt.

(c) If the debtor provides to a creditor a statement including some but not all of the information required of a statement of coerced debt or provides an oral statement of coerced debt without adequate documentation, the creditor shall notify the debtor within five business days, using the debtor’s preferred contact method, of the additional information needed to complete the statement of coerced debt and of the adequate documentation requirement.

If the creditor provides this notice orally, the creditor shall inform the debtor of the option to receive the notice in writing.

(d) A creditor who provides the debtor with Model Form A-1 complies with the requirement in subsection (c) of this section to notify the debtor of the additional information needed to complete the statement of coerced debt with adequate documentation.

BILL AS PASSED BY THE HOUSE H.385 Page 9 of 49 (e) Any written notice under this section must be provided to a debtor in both English and Spanish.

If the creditor provides oral interpretation services or otherwise communicates with a debtor in any language other than English, the creditor shall provide the notice, orally or in writing, required under this subsection to the debtor in the debtor’s preferred language.

(f) The Commissioner of Financial Regulation shall publish Model Form A-1 in English and Spanish.

(g) The Commissioner may publish Model Form A-1 in any other language the Commissioner determines is the first language of a significant number of consumers in Vermont.

This determination shall be based, at the discretion of the Commissioner, either on the numerical percentages of all consumers in Vermont for whom English or Spanish is not a first language or in a manner consistent with any rules adopted by the Department of Financial Regulation for this purpose.

(h) Model Form A-1 shall be substantially in the following form:

MODEL FORM A-1 FOR CREDITORS TO PROVIDE DEBTORS [Creditor name:

Address:

Email address:

Telephone number:

Website URL where this form can be filled out online] BILL AS PASSED BY THE HOUSE H.385 Page 10 of 49 [Debtor’s name] [Debtor’s preferred contact information:

debtor may provide a telephone number, email address, physical address, or the address of a third party] You have given us information about a debt that may have been taken out because someone used your personal information without your permission or because someone intimidated, threatened, forced, or manipulated you into taking out this debt.

For example, an abusive partner could have taken out a credit card or loan in your name without your knowledge or permission or pressured you into taking out credit to buy a car, television, computer, or other item and threatened you with harm if you refused.

Questions:

To stop collection of this debt, you need to answer the questions below.

If you do not know the answer, you can explain why you do not know the answer.

1.

Did you sign for or agree to the debt? 2.

If you did sign or agree to the debt, was it because someone threatened you or used intimidation, force, manipulation, theft, or other forms of control to take out the debt in your name? If yes, please describe how it happened.

3.

If you did not sign or agree to the debt, do you know who used your information to take out the debt? If yes, please describe.

BILL AS PASSED BY THE HOUSE H.385 Page 11 of 49 4.

What is your preferred contact method and contact information? You can provide a telephone number, email address, physical address, safe address, or the contact information of another trusted person you want to receive information for you because you are concerned about your safety.

Supporting Documentation:

Please include any one of the documents below that show that the debt was taken out by someone who you were in an abusive relationship with and threatened you or used intimidation, force, manipulation, theft, or other forms of control to take out the debt in your name.

You only need to send one, but you may provide more than one.

1.

A police report that includes information about the debt and how it was taken out.

2.

A Federal Trade Commission identity theft report that you can complete yourself online at idtheft.gov.

3.

A court order that includes information about the debt and how it was taken out.

4.

A sworn written certification from a qualified third-party professional you talked with about this debt.

The statement should include who they are, where they work, their contact information, and information you shared with them about the debt and how it was taken out.

The third party may be:

(a) an officer of the court or law enforcement personnel;

BILL AS PASSED BY THE HOUSE H.385 Page 12 of 49 (b) a licensed staff member of a program that provides assistance to persons regarding domestic violence, sexual assault, stalking, human trafficking or abuse of children, older adults, or dependent adults;

or (c) a licensed attorney or a health care provider as defined in 18 V.S.A.

§ 9402(7).

5.

Any other document such as [a divorce decree, restraining order, protection from abuse order] or other document that includes information about the debt and how it was taken out.

We need to receive your answers to the above questions and at least one document supporting your claim before we stop collecting on the debt.

Within 30 days after we receive this information, we will do all of the following:

1.

Stop all attempts to collect the coerced debt from you.

2.

Notify you in writing that we are stopping all attempts to collect the debt from you.

3.

Contact the consumer reporting agencies to which we gave information about you and the coerced debt and request that they remove the information from your credit report.

Alternatively, we also have the right to challenge your claim of coerced debt in court.

If you have questions, please contact us at:

[Creditor’s name, mailing address, telephone number, and email address].

BILL AS PASSED BY THE HOUSE H.385 Page 13 of 49 For more information, see 9 V.S.A.

chapter 63, subchapter 13.

(i) In connection with any communication related to a debtor’s statement of coerced debt, the creditor:

(1) shall only use the contact information the debtor provides in the statement of coerced debt to contact the debtor and shall not use any other contact information;

(2) shall not disclose the contact information the debtor provides in the statement of coerced debt to any other person, including the perpetrator of the coerced debt or joint account holders, without the debtor’s express written authorization;

and (3) may request that the debtor provide the identity of the perpetrator of coerced debt, if known, and contact information for that person if known.

§ 2495d.

CIVIL LEGAL REMEDIES (a) A debtor is not liable for coerced debt.

A debtor may raise as a defense in any forum and by any allowable procedure that a particular debt, or portion thereof, is coerced debt.

(b) The debtor establishes a prima facie case that a debt is coerced debt by providing a statement of coerced debt and adequate documentation.

If the creditor has a good faith basis to believe that the debt is not coerced debt, the creditor may seek a court order in a court of competent jurisdiction declaring BILL AS PASSED BY THE HOUSE H.385 Page 14 of 49 the debt is not a coerced debt.

In such a suit, the creditor has the burden to disprove the debt is coerced debt.

(c) A person who is found to be a perpetrator of coerced debt by a court of competent jurisdiction shall be civilly liable to the creditor.

The perpetrator of coerced debt may also be civilly liable to the debtor to the extent that the debtor made payments or incurred costs related to the coerced debt.

(d) A creditor may use all legal rights and remedies to collect the coerced debt from the perpetrator of coerced debt.

(e) In any court action, the presiding court shall take appropriate steps necessary to protect the debtor or an immediate family member of the debtor from an alleged perpetrator of coerced debt by, among other things, sealing court records, redacting personally identifiable information about the debtor and any immediate family member of the debtor, and directing that any deposition or evidentiary hearing be conducted remotely.

(f) Any creditor who fails to comply with any provision of section 2495c of this subchapter is liable to the debtor in an amount equal to the sum of:

(1) any actual damages sustained by the debtor as a result of such noncompliance;

(2)(A) in the case of any action by an individual, such additional damages as the court may allow, but not exceeding $5,000.00 per violation indexed annually for inflation;

or BILL AS PASSED BY THE HOUSE H.385 Page 15 of 49 (B) in the case of a class action:

(i) such amount for each named plaintiff as could be recovered under subdivision (A) of this subdivision (f)(2);

and (ii) such amount as the court may allow for all other class members, without regard to a minimum individual recovery, not to exceed the lesser of $500,000.00 indexed annually for inflation or one per centum of the net worth of the debt collector;

(iii) court costs and reasonable attorney’s fees as determined by the court;

and (iv) punitive damages if the court finds the creditor’s noncompliance was willful.

(g) The provisions of this subchapter apply to lawsuits filed in this State, regardless of whether a related contract provides that the law of another state is chosen.

§ 2495e.

CREDITOR REMEDIES Nothing in this subchapter diminishes the rights of a creditor to seek payment recovery for a coerced debt from the person who caused the debtor to incur the coerced debt.

BILL AS PASSED BY THE HOUSE H.385 Page 16 of 49 Sec.

2.

DEBT COLLECTION RULES On or before January 1, 2027, the Attorney General shall amend Vermont’s Consumer Protection Rule 104 on Debt Collection to ensure debt collection practices conform with the requirements of 9 V.S.A.

chapter 63, subchapter 13.

Sec.

3.

9 V.S.A.

§ 2480d is amended to read:

§ 2480d.

PROCEDURE IN CASE OF DISPUTED ACCURACY (a) If the completeness or accuracy of any item of information contained in the consumer’s file is disputed by the consumer and the consumer notifies the credit reporting agency directly of such dispute, the agency shall reinvestigate free of charge and record the current status of the disputed information on or before 30 business days after the date the agency receives notice from the consumer.

(b) On or before five business days after the date a credit reporting agency receives notice of a dispute from a consumer in accordance with subsection (a) of this section, the agency shall provide notice of the dispute to all persons who provided any item of information in dispute.

(c) Notwithstanding subsection (a) of this section, a credit reporting agency may terminate a reinvestigation of information disputed by a consumer under such subsection if the agency reasonably determines that such dispute by the consumer is frivolous or irrelevant.

Upon making such a determination, a credit reporting agency shall promptly notify the consumer of such BILL AS PASSED BY THE HOUSE H.385 Page 17 of 49 determination and the reasons therefor, by mail, or if authorized by the consumer for that purpose, by telephone.

The presence of contradictory information in the consumer’s file does not in and of itself constitute reasonable grounds for determining the dispute is frivolous or irrelevant.

(d) In conducting a reinvestigation under subsection (a) of this section, the credit reporting agency shall review and consider all relevant information submitted by the consumer with respect to such disputed information.

(e) If, after a reinvestigation under subsection (a) of this section of any information disputed by a consumer, the information is found to be inaccurate or cannot be verified, the credit reporting agency shall promptly delete such information from the consumer’s file.

For purposes of this section, “information” shall not include other information in the same item that is not disputed by the consumer.

(f) If any information is deleted after a reinvestigation under subsection (a) of this section, the information may not be reinserted in the consumer’s file after deletion unless the person who furnishes the information reinvestigates and states in writing or by electronic record to the agency that the information is complete and accurate.

Such furnisher shall not provide such statement unless the furnisher reasonably believes that the information is complete and accurate.

Upon such reinvestigation and statement by the furnisher, the credit reporting agency shall promptly notify the consumer of any reinsertion.

BILL AS PASSED BY THE HOUSE H.385 Page 18 of 49 (g) A credit reporting agency shall provide written notice of the results of any reinvestigation under this subsection within five business days of following the completion of the reinvestigation, by mail or, if authorized by the consumer for that purpose, by telephone.

This notice shall include:

(1) a statement that the reinvestigation is complete;

(2) a statement of the determination of the agency on the completeness or accuracy of the disputed information;

(3) a credit report that is based upon the consumer’s file as that file is revised as a result of the reinvestigation;

(4) a description of the manner in which the information disputed by the consumer has been altered, changed, deleted, or modified in the consumer’s credit report;

(5) a description of the procedure used to determine the accuracy and completeness of the information, including the name, business address, and, if available, the telephone number of any person contacted in connection with such information;

and (6) a notification that the consumer has the right, pursuant to 15 U.S.C.

§ 1681i, to add a statement to the consumer’s file disputing the accuracy or completeness of the information.

(h) If a consumer asserts that a debt or any portion of a debt is the result of coerced debt as defined in subdivision 2495a(3) of this title and provides to the BILL AS PASSED BY THE HOUSE H.385 Page 19 of 49 consumer reporting agency either a court order of relief pursuant to subsection 2495d(b) of this title or a statement of coerced debt as defined in subdivision 2495a(10) of this title and adequate documentation as defined in subdivision 2495a(2) of this title, the consumer reporting agency shall reinvestigate the debt pursuant to this section.

If after the reinvestigation it is determined that the debt is the result of coerced debt, the consumer reporting agency shall remove any reference to the debt or any portion of the debt determined to be the result of coerced debt from the consumer’s credit report.

As used in this section, “statement of coerced debt” means a signed statement that includes:

(1) an assertion that the debtor is a survivor of domestic abuse, economic abuse, or human trafficking;

(2) a recitation of the facts supporting the claim that the debt is coerced;

and (3) if only a portion of the debt is claimed to be coerced debt, an itemization of the portion of the debt that is claimed to be coerced debt.

Sec.

4.

9 V.S.A.

§ 2480k is amended to read:

§ 2480k.

COMPLAINTS TO LAW ENFORCEMENT AGENCIES A person who has learned or reasonably suspects that his or her the person’s personal identifying information has been unlawfully used by another, as described in 13 V.S.A.

§ 2030(a) 2030, may make a complaint about the unlawful use of personal identifying information to the State Police or to the BILL AS PASSED BY THE HOUSE H.385 Page 20 of 49 person’s local law enforcement agency.

The law enforcement agency shall take the complaint and provide the complainant with a copy of the complaint, the name of the law enforcement officer taking the complaint, and an incident number or case number assigned to the complaint by the law enforcement agency.

If the suspected crime was committed in a different jurisdiction, the law enforcement agency shall take the complaint and provide the complainant with a copy of the complaint, the name of the law enforcement officer taking the complaint, and an incident number or case number assigned to the complaint by the law enforcement agency and refer the complaint to a law enforcement agency in that different jurisdiction.

Sec.

5.

EFFECTIVE DATE This act shall take effect on July 1, 2026.

Sec.

1.

9 V.S.A.

chapter 63, subchapter 13 is added to read:

Subchapter 13.

Coerced Debt § 2495a.

DEFINITIONS As used in this subchapter:

(A) a copy of a report filed with a federal, state, or local law enforcement agency that identifies the coerced debt and the circumstances under which the coerced debt was incurred, the filing of which subjects the BILL AS PASSED BY THE HOUSE H.385 Page 21 of 49 person filing the report to criminal penalties for filing false information if, in fact, the information in the report is false;

VT LEG #388089 v.1 AS PASSED BY HOUSE H.385 Page 2 of 30 (i) use of the debtor’s personal information without the debtor’s knowledge, authorization, or consent;

§§ 2101(15); 2101(15);

§§ 2101(2). 2101(2).

or BILL AS PASSED BY THE HOUSE H.385 Page 22 of 49 (C) is a vulnerable adult who is a survivor of abuse, neglect, or exploitation as those terms are defined under 33 V.S.A.

§§ 1101(1). 1101(1).

§§ 1101(1), 1101(1), except that the abuse need not occur between family or household members.

§§ 2652 2652 or 2653.

VT LEG #388089 v.1 AS PASSED BY HOUSE H.385 Page 3 of 30 (9) “Perpetrator of coerced debt” or “perpetrator” means an individual who causes or is alleged to have caused coerced debt to be incurred by another.

§§ 1614(a)(1) 1614(a)(1) employed at a program that assists survivors of domestic violence, sexual assault, stalking, human trafficking, or abuse of children, and who has relevant training or expertise;

BILL AS PASSED BY THE HOUSE H.385 Page 23 of 49 (D) a licensed attorney;

§§ 9402(7). 9402(7).

VT LEG #388089 v.1 AS PASSED BY HOUSE H.385 Page 4 of 30 (iii) a statement by the debtor disclosing that the debtor did not willingly authorize the use of the debtor’s name or personal information to incur such debt;

(vi) the debtor’s preferred language and contact method and information such as a telephone number, email address, physical address, or BILL AS PASSED BY THE HOUSE H.385 Page 24 of 49 safe address for either the debtor or a third party whom the debtor designates to receive information about the coerced debt, which shall be specified by the debtor;

The term also includes any VT LEG #388089 v.1 AS PASSED BY HOUSE H.385 Page 5 of 30 electronic or digital transmission that provides a verifiable date, timestamp, or tracking capability.

CERTIFICATION OF QUALIFIED THIRD-PARTY PROFESSIONAL BILL AS PASSED BY THE HOUSE H.385 Page 25 of 49 I, ....................

§§ 2495a(10) 2495a(10) who has had in-person contact or face-to-face contact through an electronic medium with ....................

(name of debtor) is a survivor of domestic abuse or human trafficking or is a vulnerable adult who is a survivor of abuse, VT LEG #388089 v.1 AS PASSED BY HOUSE H.385 Page 6 of 30 neglect, or exploitation, and has incurred all or a portion of debt that is coerced debt.

(Printed name of qualified third-party professional) (Signature of qualified third-party professional) (Business address and business telephone) (Date) §BILL 2495b.AS PASSED BY THE HOUSE H.385 Page 26 of 49 § 2495b.

§§ 2495c. 2495c.

VT LEG #388089 v.1 AS PASSED BY HOUSE H.385 Page 7 of 30 (2) notify the debtor it has ceased all collection activities pending further review of the claim;

(b) If a debtor notifies a creditor that a particular debt being collected, or a portion thereof, is coerced debt, but does not provide all the information required under subsection (a) of this section or provides such notice orally, and if such creditor does not cease such collection activities, then within 10 business days after receipt of the debtor’s notice of the coerced debt, the creditor shall inform the debtor that additional written information is required BILL AS PASSED BY THE HOUSE H.385 Page 27 of 49 and shall provide the debtor with Model Form A-1, as described in subsection (g) of this section.

(2) The 30-day period described in subdivision (1) of this subsection may be extended for up to an additional 15 days if the creditor receives VT LEG #388089 v.1 AS PASSED BY HOUSE H.385 Page 8 of 30 supplementary information from the debtor during that 30-day period that is relevant to the investigation.

(1) determines the disputed debt is coerced debt, the creditor shall notify the debtor that it is ceasing collection activities and contact any consumer reporting agencies to which it furnished adverse information about the BILL AS PASSED BY THE HOUSE H.385 Page 28 of 49 debtor’s coerced debt and request that such information be deleted from the debtor’s file and credit report;

VT LEG #388089 v.1 AS PASSED BY HOUSE H.385 Page 9 of 30 (1) shall not disclose the contact information the debtor provides in the statement of coerced debt to any other person, including the perpetrator or joint account holders, without the debtor’s express written authorization, unless directed or authorized to do so by court order;

(g) Model Form A-1 shall be developed by the Commissioner of Financial Regulation, posted in English and Spanish on a publicly accessible website BILL AS PASSED BY THE HOUSE H.385 Page 29 of 49 maintained by the Department of Financial Regulation, and substantially in the following form:

debtor may provide a telephone number, email address, physical address, or the address of a third party] VT LEG #388089 v.1 AS PASSED BY HOUSE H.385 Page 10 of 30 [Debtor’s preferred language] You have given us information about a debt that may have been taken out because someone used your personal information without your permission or because someone intimidated, threatened, forced, or manipulated you into taking out this debt.

BILL AS PASSED BY THE HOUSE H.385 Page 30 of 49 Questions:

What is your preferred contact method and contact information? You can provide a telephone number, email address, physical address, safe address, VT LEG #388089 v.1 AS PASSED BY HOUSE H.385 Page 11 of 30 or the contact information of another trusted person you want to receive information for you because you are concerned about your safety.

A copy of a report filed with a federal, state, or local law enforcement agency that identifies the coerced debt and the circumstances under which the BILL AS PASSED BY THE HOUSE H.385 Page 31 of 49 coerced debt was incurred, the filing of which subjects the person filing the report to criminal penalties for filing false information if, in fact, the information in the report is false;

VT LEG #388089 v.1 AS PASSED BY HOUSE H.385 Page 12 of 30 (c) a crisis worker as defined in 12 V.S.A.

§§ 1614(a)(1) 1614(a)(1) employed at a program that assists survivors of domestic violence, sexual assault, stalking, human trafficking, or abuse of children, and who has relevant training or expertise;

§§ 9402(7). 9402(7).

BILL AS PASSED BY THE HOUSE H.385 Page 32 of 49 We need to receive your answers to the above questions and at least one document supporting your claim before we stop collecting on the debt.

Alternatively, we also have the right to VT LEG #388089 v.1 AS PASSED BY HOUSE H.385 Page 13 of 30 challenge your claim of coerced debt in court, subject to legal protections for victims of coerced debt.

BILL AS PASSED BY THE HOUSE H.385 Page 33 of 49 (h) With respect to coerced debt secured by tangible personal property, nothing in this subchapter shall affect a creditor’s right to enforce a security interest upon default under 9A V.S.A.

§§ 2495d. 2495d.

If VT LEG #388089 v.1 AS PASSED BY HOUSE H.385 Page 14 of 30 the debtor establishes a prima facie case of coerced debt, the creditor shall bear the burden of proving, by a preponderance of the evidence, that the debt is not coerced debt.

BILL AS PASSED BY THE HOUSE H.385 Page 34 of 49 (c) This section shall not be construed to limit or infringe upon any other rights or remedies available under common law or any other provision of law or rule.

The debtor shall bear the burden of proving by a preponderance of the evidence that, if the debtor discloses the identity of and contact information for the perpetrator, the perpetrator poses a danger of future abuse to the debtor or to a member of the VT LEG #388089 v.1 AS PASSED BY HOUSE H.385 Page 15 of 30 debtor’s immediate family.

A debtor seeking a relief from abuse BILL AS PASSED BY THE HOUSE H.385 Page 35 of 49 order or an order against stalking or sexual assault shall do so in accordance with 15 V.S.A.

VT LEG #388089 v.1 AS PASSED BY HOUSE H.385 Page 16 of 30 (i) An action by a debtor against a perpetrator shall be commenced within six years after the date the debtor discovered or reasonably should have discovered the coerced debt or within six years after the coercion or abuse giving rise to the debt ceased, whichever is later.

§BILL 2495e.AS PASSED BY THE HOUSE H.385 Page 36 of 49 § 2495e.

§§ 2495f. 2495f.

VT LEG #388089 v.1 AS PASSED BY HOUSE H.385 Page 17 of 30 (b) Information or material that is subject to privilege protections under federal or state law that is shared by the debtor pursuant to the provisions of this subchapter shall not be disclosed by the recipient, unless the debtor expressly waives the privilege, or the privilege is waived by an express provision of law.

(c) Any record or information produced or acquired by a public body pursuant to the provisions of this subchapter that contains financial or personally identifiable information related to a claim of coerced debt shall be BILL AS PASSED BY THE HOUSE H.385 Page 37 of 49 kept confidential and shall be exempt from public inspection or copying under Vermont’s Public Records Act.

§§ 317(e). 317(e).

§§ 2480d 2480d is amended to read:

VT LEG #388089 v.1 AS PASSED BY HOUSE H.385 Page 18 of 30 (b) On or before five business days after the date a credit reporting agency receives notice of a dispute from a consumer in accordance with subsection (a) of this section, the agency shall provide notice of the dispute to all persons who provided any item of information in dispute.

Upon making such a determination, a credit reporting agency shall promptly notify the consumer of such BILL AS PASSED BY THE HOUSE H.385 Page 38 of 49 determination and the reasons therefor, by mail, or, if authorized by the consumer for that purpose, by telephone.

For purposes of this section, VT LEG #388089 v.1 AS PASSED BY HOUSE H.385 Page 19 of 30 “information” shall does not include other information in the same item that is not disputed by the consumer.

BILL AS PASSED BY THE HOUSE H.385 Page 39 of 49 (g) A credit reporting agency shall provide written notice of the results of any reinvestigation under this subsection within five business days of following the completion of the reinvestigation, by mail or, if authorized by the consumer for that purpose, by telephone.

VT LEG #388089 v.1 AS PASSED BY HOUSE H.385 Page 20 of 30 (4) a description of the manner in which the information disputed by the consumer has been altered, changed, deleted, or modified in the consumer’s credit report;

(h) If a consumer provides notice to a consumer reporting agency that a debt or any portion of a debt is coerced debt and provides the consumer BILL AS PASSED BY THE HOUSE H.385 Page 40 of 49 reporting agency either a court order finding that the debt was coerced or a statement of coerced debt and adequate documentation, as those terms are defined in subchapter 13 of this chapter, the consumer reporting agency shall reinvestigate the debt pursuant to this section.

VT LEG #388089 v.1 AS PASSED BY HOUSE H.385 Page 21 of 30 Sec.

§§ 2480k 2480k is amended to read:

If the suspected crime was committed in a different jurisdiction, the law enforcement agency shall take the complaint and provide the complainant with a copy of the complaint, the name of the law enforcement officer taking the complaint, and an incident number or case number assigned to the BILL AS PASSED BY THE HOUSE H.385 Page 41 of 49 complaint by the law enforcement agency and refer the complaint to a law enforcement agency in that different jurisdiction.

Protection from Financial Exploitation §§ 10801. 10801.

VT LEG #388089 v.1 AS PASSED BY HOUSE H.385 Page 22 of 30 (1) A covered entity has a duty imposed by law and contract to conduct customer-directed transactions in a timely manner and in accordance with a customer’s instructions.

§§ 10802. 10802.

BILL AS PASSED BY THE HOUSE H.385 Page 42 of 49 (1) “Account” means any deposit, share, custodial, trust, or transaction account, whether held individually or jointly, and whether checking, savings, money market, certificate of deposit, prepaid, or similar, that is established, maintained, or administered by a covered entity, through which the covered entity accepts, holds, disburses, or transfers funds of a customer.

The term includes accounts held for the benefit of another, including fiduciary, VT LEG #388089 v.1 AS PASSED BY HOUSE H.385 Page 23 of 30 guardianship, conservatorship, power of attorney, and representative payee accounts, to the extent the account is maintained by a covered entity.

(3) “Covered entity” means a bank, trust company, or savings institution as defined in subdivision 11101(32) of this title or a credit union as BILL AS PASSED BY THE HOUSE H.385 Page 43 of 49 defined in subdivision 30101(5) of this title.

(4) “Customer” means any person who establishes, maintains, or is a beneficiary of an account with a covered entity, including any person who owns, controls, or has a present or contingent legal or beneficial interest in VT LEG #388089 v.1 AS PASSED BY HOUSE H.385 Page 24 of 30 funds held in the account, whether acting directly or through an agency, fiduciary, or representative.

§BILL 10803.AS PASSED BY THE HOUSE H.385 Page 44 of 49 § 10803.

VT LEG #388089 v.1 AS PASSED BY HOUSE H.385 Page 25 of 30 (1) delay or refuse one or more transactions with or involving the customer;

(b) A covered entity is not required to take protective action under this section with regard to a customer’s account but may use its sole discretion to BILL AS PASSED BY THE HOUSE H.385 Page 45 of 49 determine whether taking such action is warranted based on the information available to it at the time.

VT LEG #388089 v.1 AS PASSED BY HOUSE H.385 Page 26 of 30 (B) when the covered entity is satisfied within its sole discretion that the transaction will not likely result in financial exploitation;

§§ 4—402; 4—402;

§§ 5001 5001 et seq., the Expedited Funds Availability Act, 12 U.S.C.

§§ 4001 4001 et seq., or related regulations, without imposing a duty to review every deposit or check individually;

and BILL AS PASSED BY THE HOUSE H.385 Page 46 of 49 (3) not constitute a violation of 9A V.S.A.

VT§ 10804. LEG #388089 v.1 AS PASSED BY HOUSE H.385 Page 27 of 30 § 10804.

§§ 6801 6801 et seq., as those laws may be amended.

§BILL 10805.AS PASSED BY THE HOUSE H.385 Page 47 of 49 § 10805.

VT§ 10806. LEG #388089 v.1 AS PASSED BY HOUSE H.385 Page 28 of 30 § 10806.

BILL AS PASSED BY THE HOUSE H.385 Page 48 of 49 Sec.

In conducting such study, the Commissioner shall consult with representatives from the Vermont Network Against Domestic and Sexual Violence, the Vermont Bankers Association, the VT LEG #388089 v.1 AS PASSED BY HOUSE H.385 Page 29 of 30 Association of Vermont Credit Unions, the Office of the Attorney General, Vermont Legal Aid, and any other person deemed appropriate by the Commissioner.

BILL AS PASSED BY THE HOUSE H.385 Page 49 of 49 Sec.

4 (suspicious banking transactions), and Sec.

6 VT LEG #388089 v.1 AS PASSED BY HOUSE H.385 Page 30 of 30 (report on coerced debt) shall take effect on July 1, 2028, and shall apply to all outstanding coerced debt, including coerced debt incurred prior to July 1, 2028.

VT LEG #388089 v.1