Senator Eldridge’s Debt Collection Fairness Act Unanimously Passes Senate
Legislation will strengthens financial protections for working families and communities of color
(BOSTON) - Last week, the Massachusetts Senate unanimously passed Senator Jamie Eldridge (D-Marlborough)’s Debt Collection Fairness Act to protect consumers and keep people from being pushed into financial ruin if they are sued for financial debt. The new law would make debt collection practices fairer, protect wages, and make clear that no person can be imprisoned for unpaid consumer debt.
“As President Trump dismantles federal protections, Massachusetts must act,” said Senator Eldridge. “Here in Massachusetts, I am proud that the state Senate is voting on my bill—the Debt Collection Fairness Act—to provide protections from the predatory practices of debt collectors for working class families. I’d like to thank Senate President Karen E. Spilka, Senate Ways and Means Committee Chair Michael J. Rodrigues, and Financial Services Senate Committee Chair Paul R. Feeney for their steadfast support for this bill.”
The legislation, S.2537, would strengthen consumer protections for individuals sued for debt, many of which are outdated or purchased by collectors for a fraction of their original value. Key provisions of the bill include:
Reducing the interest rate on consumer debt from 12% to 3%
Exempting most wages and child support from garnishment
Prohibiting employers from penalizing employees over personal debt
Establishing a five-year statute of limitations on legal debt claims
Banning imprisonment for unpaid consumer debt
The bill also provides stronger safeguards for people experiencing financial hardship and reinforces Massachusetts’ commitment to equity and fairness.
“Families already in the grip of debt should not have to choose between putting food on the table and paying the exorbitant costs charged by debt collection companies—or fear imprisonment,” said Senate President Karen E. Spilka (D-Ashland). “It is a story we hear too often, and far too often in our communities of color. An equitable Commonwealth is one where we have people’s backs, and I’m proud that the Senate is taking action today to do just that. I am also thankful to Chair Rodrigues, Chair Feeney, and Senator Eldridge for their work.”
“I’m pleased the Senate has passed this commonsense consumer protection measure,” said Senator Michael J. Rodrigues (D-Westport), Chair of the Senate Committee on Ways and Means. “This long overdue legislation will protect individuals from being pushed over a financial cliff due to unsavory debt collectors who prey upon people experiencing financial hardship, with marginalized communities often being disproportionally affected. It’s more important than ever for the Commonwealth to stand up and protect these basic consumer rights in the wake of protections disappearing at the federal level. I thank Chair Feeney, Senator Eldridge, and Senate President Spilka for their determined effort to bring this important legislation to the Senate floor for passage.”
“Those caught in the grip of a debt cycle know all too well the often-predatory practices used by debt collectors, and the crippling reality of staring down a ballooning debt that seems insurmountable,” said Senator Paul Feeney, Chair of the Joint Committee on Financial Services (D-Foxborough). “While the Debt Collection Fairness Act will not eliminate debt or an obligation to pay, the bill does provide a lifeline and opportunity for hope for those caught in the deepest depths of this spiral so that families have some room to breathe, to move forward and break this debilitating cycle. I am grateful to Senator Jamie Eldridge for championing this and for his strong advocacy, the many stakeholders and advocates who brought this bill forward, and for the leadership of Chair Michael Rodrigues and Senate President Karen Spilka for their commitment to empowering working people and protecting our constituents from shady practices.”
The Debt Collection Fairness Act was reported favorably out of the Joint Committee on Financial Services on June 20, 2025, and advanced from the Senate Committee on Ways and Means on July 10, 2025. Votes of both committees are available online, along with a full summary of the legislation and a recording of the Senate’s livestreamed debate and vote on the bill.
The bill now heads to the House of Representatives for consideration.
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