AB 250 — Revises provisions relating to certain debt. (BDR 52-599)

(ReprintedAssembly withBill amendmentsNo. adopted on April 21, 2025) FIRST REPRINT A.B.

250250–Assemblymembers AGoulding; SSEMBLY B ILL N O.

250–AAnderson, SSEMBLYMEMBERSFlanagan, GHunt, OULDINGLa ;Rue Hatch and Nguyen Joint Sponsors:

ASenators NDERSONKrasner , FLANAGAN , H UNT , L A RUE HATCH AND N GUYEN FEBRUARY 18, 2025 ____________ Referred to Committee on Commerce and LaborSteinbeck SUMMARY—RevisesCHAPTER.......... provisions relating to certain debt.

(BDR 52-599) FISCAL NOTE:

Effect on Local Government:

No.

Effect on the State:

No.

~ EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

establishing coerced debt as an affirmative defense in certain civil actions to collect aan unsecured consumer debt;

setting forth requirements for asserting the affirmative defense of coerced debt;

requiring a court to take certain actions upon finding that a debt is a coerced debt;

authorizing certain claims and remedies;

revising provisions governing the presumption of intent to defraud in the issuance of certain instruments;

(See, civil action to collect aan unsecured consumer debt, a coerceddebtor debt may beassert used as anatanin in any affirmative defense.defense that the debt is a coerced debt.

(1) sets forth the requirements for establishingasserting athe prima facie affirmative defense of coerced debt;

and (2) definesrequires “coerceda debt”court, toupon meanfinding that a consumer debt or any part thereof which is the proximate result of a personcoerced havingdebt, been a victim of domestic violence, human trafficking, abuse, coercion, fraud, duress, threats, intimidation, manipulation or other unlawful conduct intended to induceorder the personcreditor to incurcease debtcollection againstefforts hisand, orif herapplicable, owncorrect will.certain records.

In addition, section 1 authorizes:

(1) the creditor to join a third party who may be liable for the coerced debtor to recover attorney’s fees and costs from the person who coerced the debt.e Existing law makes it a crime to issue a check or draft against insufficient or no funds with intent to defraud.

(NRS 205.130) Under existing law, intent to defraud and knowledge of insufficient funds are presumed to exist if payment of the instrument is refused by the drawee when presented in the usual course of business, unless the drawer pays the full amount due within 5 days after receiving notice for the purpose of determining whether a check or draft is presented in the usualat, course of business, a check or draft that constitutes a credit instrument is deemed to be presented in the usual course of business if it is presented not more than 2 years after the date on which the credit instrument is issued.

- 83rd Session (2025) – 2 – EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

In any civil action to collect aan unsecured consumer debt, it is an affirmative defense under applicable court rules that the debt is a coerced debt.

ATo debtorassert establishesthe a prima facie affirmative defense thatof acoerced debtdebt, is a coerceddebtor debtmust bysubmit provingto that:the court:

- *AB250_R1* – 2 – (a) TheA debtwritten isattestation athat consumerincludes, debtwithout accruedlimitation: in his or her name;

(b)(1) TheA debtstatement wasthat accruedclearly asidentifies the proximatespecific resultdebt of the debtor havingasserts beenis a victimcoerced ofdebt; domestic violence, human trafficking, abuse, coercion, fraud, duress, threats, intimidation, manipulation or (c) Being a victim of domestic violence, human trafficking, abuse, coercion, fraud, duress, threats, intimidation, manipulation or other unlawful conduct caused the debtor to incur the debt against the debtor’s will.

(2) A description of the circumstances under which the supporting the allegation;ncurred, including specific facts (3) Except as otherwise provided in subsection 4, any information known to the debtor regarding the identity and contact information of the person alleged to have coerced the debtor into incurring the debt;

and (4) A statement indicating the number of times the debtor has previously asserted the affirmative defense of coerced debt in any action or proceeding before a court in this State or any other state, including whether each such assertion was successful or unsuccessful;

and (b) A copy of at least one of the following documents:

(1) A police report, investigative report or complaint which the debtor filed with a law enforcement agency that is relevant to establishing that the debt is a coerced debt;

(2) A report filed with the Federal Trade Commission indicating that the debtor is a victim of identity theft;

or (3) A temporary or extended order for protection against domestic violence issued by a court of competent jurisdiction or other court record that is relevant to establishing that the debt is a coerced debt.

AsIf usedthe incourt thisdetermines section,that “coercedthe debt”debt meansidentified aby consumerthe debtdebtor orpursuant anyto partsubparagraph thereof(1) whichof isparagraph the(a) proximateof resultsub(a) ofThe acourt personshall havingorder beenthe acreditor victimto ofimmediately domesticcease violence,all humancollection trafficking,efforts abuse,related coercion,to fraud,the duress,coerced threats,debt intimidation,and, manipulationif orapplicable, otherto unlawful- conduct83rd intendedSession to(2025) induce– the3 person– similar record to incurreflect that the debt againstis hisa coerced debt;t or her(b) ownThe will.creditor may join any third party who is or may be liable for the coerced debt or amend its complaint to assert a claim against any such person;

and (c) The debtor is entitled to recover from the person who coerced the debtor into incurring the coerced debt reasonable attorney’s fees and costs, but may not recover such fees and costs from the creditor.

4.

If the debtor believes that providing the information required by subparagraph (3) of paragraph (a) of subsection 2 is likely to result in abuse to the debtor or an immediate family member of the debtor, the debtor may, in lieu of providing the information, submit to the court a statement, signed and sworn to or affirmed by the debtor, that such disclosure is likely to result in abuse to the debtor or an immediate family member of the debtor.

5.

As used in this section: