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Advocates, legal aid push bill to let survivors challenge coerced debt; banks ask for fixes
Summary
Del. Leslie Lopez and survivor‑advocates urged passage of HB 11 98 to let victims of coerced debt notify creditors, stop collections and seek court relief; bankers and creditor groups asked for narrower definitions, longer response windows and technical amendments to ensure operational feasibility.
Delegate Leslie Lopez told the Judiciary Committee HB 11 98 is designed to give survivors of domestic violence, foster youth and older adults a clear legal path to challenge debts that were coerced or obtained through financial abuse. "Coerced debt ... can trap survivors in a state of economic instability long after they've escaped their abusive relationship," she said.
Witnesses from legal‑aid groups, survivor advocates and economic‑justice organizations described the long‑term harm coerced debt causes — damaged credit, wage garnishments and barriers to housing and employment — and said current remedies are cumbersome or unavailable. Marceline White, executive director of Economic Action Maryland, and Ami Vora of Maryland Legal Aid urged lawmakers to adopt a statutory process modeled on other states that allows notice, investigation and court relief to restore credit and, where appropriate, require correction and reparation.
Creditors, bankers and collectors expressed support for the concept but requested technical fixes. Concerned parties asked the legislature to clarify the definition of coerced debt, permit alternative documentation (beyond an FTC identity‑theft form), set practical timelines for creditor investigations and preserve tools that make resolution workable for small creditors. Several creditors' groups said they were willing to negotiate amendments to make the bill operational while protecting genuine victims.
Ending — Sponsor and stakeholders signaled willingness to refine definitions and procedural safeguards; the committee heard both technical proposals and broad support for survivor relief.
