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Vermont committee reviews H.385 to shield victims of coerced debt with new confidentiality and review process
Summary
A House Commerce & Economic Development subcommittee examined H.385, which would let debtors submit a sworn statement and qualified third-party certification to stop collection while creditors review; the draft adds a Public Records Act exemption, 10-business-day halt, a 30-day review, and a DFR-hosted model form, with stakeholders raising procedural and practical concerns.
The House Commerce & Economic Development committee on Thursday reviewed H.385, a bill establishing civil remedies and procedural protections for victims of coerced debt. Legislative counsel and multiple witnesses described changes to evidence standards, creditor duties, and confidentiality safeguards included in a revised strike-all draft.
Maria Royal, legislative counsel, walked the committee through the updated draft, saying the bill now requires a debtor to submit a sworn statement and at least one form of "adequate documentation" (for example, a law-enforcement report or a court order) to support a coerced-debt claim. Royal said the draft removes a Federal Trade Commission identity-theft report from the list of presumptively adequate documents because such reports are easily obtained and not independently verified.
Royal said the bill imposes immediate procedural protections for debtors: within 10 business days of receiving a debtor's statement and adequate…
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