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Financial Services Law Insights and Observations

DC passes debt collection bill

State Issues State Legislation District of Columbia Debt Collection Debt Buyer Consumer Finance

State Issues

On September 23, the District of Columbia mayor signed B24-0357, which updates the District’s collection laws by expanding protections to cover most consumer debt, in addition to strengthening existing protections for DC consumers. Among other things, the bill: (i) prohibits deceptive behavior from debt collectors, such as making threats; (ii) clarifies that no one can be jailed for failing to pay a debt; (iii) prohibits debt collectors from communicating any information regarding a person’s debt to employers or family members; and (vi) clarifies that debt buyers are required to follow all laws applicable to debt collectors. The law is currently effective.