Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Consumer Protection topic
No spam. Unsubscribe anytime.
AB 250 would let victims of domestic or trafficking‑related coerced debt raise an affirmative defense in collection suits
Summary
AB 250 creates an affirmative defense for 'coerced debt' in civil collections when debt was incurred by threats, fraud, force or manipulation tied to domestic violence or trafficking; stakeholders including legal aid, survivors’ advocates and collections trade groups reached a negotiated neutral position on the amended bill.
Assembly Bill 250 (sponsor: Assemblywoman Heather Golding) was heard May 13 and proposes to add a statutory definition of “coerced debt” and to create an affirmative defense for victims of domestic violence or trafficking who are sued on consumer debt incurred under coercion. The bill reflects a stakeholder negotiation among survivors’ advocates, Legal Aid of Southern Nevada, and collections industry representatives.
Serena Evans, policy director for the Nevada Coalition to End Domestic and Sexual Violence, described coerced debt as a common tactic used by abusers — fraud, threats, manipulation or force to incur debt in a victim’s name — and cited national survey data showing high prevalence and credit damage for survivors. She said coerced debt can “systemically strip victims of financial autonomy” and have lifelong consequences.
The conceptual amendment before the committee narrows the bill and lays out procedures: a defendant sued on consumer debt may raise an attested statement describing how the debt was incurred, provide a police report or other official record, and provide identifying information about the individual who caused the coerced debt when it is safe to do so. The judge then determines whether the elements of the affirmative defense are met. If the court finds the defense applies, the creditor cannot collect the coerced debt; the court may add the perpetrator as a defendant so the creditor may pursue the real debtor.
Representatives of Nevada collections trade groups testified in support or neutral and thanked sponsors for the negotiated amendment; bank and credit union representatives voiced neutral support. Consumer and survivors’ groups — including SafeNest, Nevada Coalition to End Domestic and Sexual Violence, Progressive Leadership Alliance of Nevada, and others — testified in support. No opposition witnesses appeared on the record.
The transcript records no committee vote. Stakeholders characterized the amended bill as operationalizable for collectors and as a meaningful remedy for survivors.
