An Act amending Title 12 (Commerce and Trade) of the Pennsylvania Consolidated Statutes, providing for protections against coerced debt; and imposing duties on the Administrative Office of Pennsylvania Courts.

PRIOR PRINTER'S NO. 3117 PRINTER'S NO. 3639
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2344
Session of
2026
INTRODUCED BY ORTITAY, CONKLIN, MIHALEK AND JAMES,
MARCH 31, 2026
AS REPORTED FROM COMMITTEE ON JUDICIARY, HOUSE OF
REPRESENTATIVES, AS AMENDED, JUNE 17, 2026
AN ACT
Amending Title 12 (Commerce and Trade) of the Pennsylvania
Consolidated Statutes, providing for protections against
coerced debt; and imposing duties on the Treasury Department.
ADMINISTRATIVE OFFICE OF PENNSYLVANIA COURTS.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Part IV of Title 12 of the Pennsylvania
Consolidated Statutes is amended by adding a chapter to read:
CHAPTER 59
PROTECTIONS AGAINST COERCED DEBT
Sec.
5901. Scope of chapter.
5902. Definitions.
5903. Petition.
5904. Notice of dispute.
5905. Amended petition.
5906. Determination.
5907. Cause of action.
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§ 5901. Scope of chapter.
This chapter relates to protections against and disputes
involving coerced debt.
§ 5902. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"ADMINISTRATIVE OFFICE." THE ADMINISTRATIVE OFFICE OF
PENNSYLVANIA COURTS.
"Coerced debt." A debt or portion of a debt that was
incurred because of a domestic violence offense, fraud, duress,
intimidation, threat, force, coercion, manipulation, undue
influence, misinformation or the nonconsensual use of the
debtor's personal identifying information.
"Creditor."
(1) A person to whom a debt is owed or alleged to be
owed.
(2) The term includes:
(i) An agent, servant, employee or other
representative of the person described under paragraph
(1), conducting business under the name of the person and
within this Commonwealth.
(ii) A third party utilized by the person described
under paragraph (1) for the collection of the debt owed
or alleged to be owed.
"Debt."
(1) An obligation or an alleged obligation to pay money
or other consideration.
(2) The term does not include debt secured by real
property.
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"Debtor." An individual who owes or who is alleged to owe a
debt.
"Department." The Treasury Department of the Commonwealth.
"Domestic violence offense." Any of the following offenses
under 18 Pa.C.S. (relating to crimes and offenses) if committed
against a family or household member:
(1) Chapter 27 (relating to assault).
(2) Section 2902 (relating to unlawful restraint).
(3) Section 2903 (relating to false imprisonment).
(4) Chapter 30 (relating to human trafficking).
(5) Chapter 31 (relating to sexual offenses).
(6) Section 4302 (relating to incest).
(7) Section 4304 (relating to endangering welfare of
children).
(8) Section 5902(b.1) (relating to prostitution and
related offenses).
(9) Section 6301(a)(1)(ii) (relating to corruption of
minors).
(10) Section 6312 (relating to sexual abuse of
children).
(11) Section 6318 (relating to unlawful contact with
minor).
(12) Section 6320 (relating to sexual exploitation of
children).
"Family or household member." Any of the following:
(1) A spouse or individual who has been a spouse.
(2) An individual living as a spouse or who lived as a
spouse.
(3) A parent.
(4) A child.
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(5) An individual related by consanguinity or affinity.
(6) A current or former sexual or intimate partner.
(7) An individual who shares biological parenthood.
"Perpetrator of coerced debt." An individual who caused or
is alleged to have caused coerced debt to be incurred by another
individual.
"Petition." The coerced debt dispute petition developed
under section 5903(a) (relating to petition).
"Qualified third party." Any of the following:
(1) A law enforcement officer.
(2) A physician, physician assistant, psychiatrist,
psychologist, social worker, nurse, therapist or clinical
professional counselor, if licensed or certified to practice
within this Commonwealth.
(3) An individual who advises or provides services to
other individuals regarding domestic violence, family
violence, human trafficking or abuse of children, the elderly
or dependent adults.
(4) A member of the clergy of a church, religious
society or denomination.
§ 5903. Petition.
(a) Development.--The department shall ADMINISTRATIVE OFFICE
MAY develop a coerced debt dispute petition to be used by a
debtor to dispute a debt as coerced debt.
(b) Contents.--The petition must MAY include:
(1) Information about the debt or portion thereof to
allow a creditor to identify the account associated with the
debt.
(2) Either of the following:
(i) A statement that the debtor did not willingly
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authorize the use of the debtor's name, account or
personal information for incurring the debt or portion
thereof.
(ii) A claim that the debt or portion thereof is a
coerced debt.
(3) Facts describing how the debt was incurred, if known
by the debtor.
(4) Documentation from a qualified third party providing
evidence of the coerced debt.
(5) The debtor's preferred contact method and
information, which may include telephone number, email
address, physical address or safe address for the debtor or a
third party whom the debtor designates to receive information
about the coerced debt.
(6) The full name of the alleged perpetrator of coerced
debt and any available contact information.
(7) Any other information that the department
ADMINISTRATIVE OFFICE deems reasonably necessary.
(c) Posting.--The department shall ADMINISTRATIVE OFFICE MAY
post the petition on its publicly accessible Internet website.
§ 5904. Notice of dispute.
A debtor seeking to dispute an alleged coerced debt shall
complete a petition and send it to the creditor.
§ 5905. Amended petition.
(a) Authorization.--If, after receiving a petition, the
creditor determines that the petition is incomplete or that more
information is required for the creditor to make a good faith
effort to resolve the alleged coerced debt matter, the creditor
shall request an amended petition from the debtor by using the
preferred contact method contained in the petition.
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(b) Time frame.--The request for an amended petition must be
made no later than 10 business days after receipt of the
petition.
§ 5906. Determination.
(a) Determination generally.--Within 10 business days of
receipt of a petition or an amended petition, the creditor shall
make a good faith determination of whether the challenged debt
qualifies as coerced debt.
(b) Notice.--The creditor shall notify the debtor of its
determination under this section by using the preferred contact
method contained in the petition or amended petition.
(c) Determination of coerced debt.--If the creditor
determines that the debt described in the petition or amended
petition qualifies, in whole or in part, as coerced debt, the
creditor shall:
(1) Cease all attempts to collect the coerced debt from
the debtor.
(2) Unless the debtor is the perpetrator of coerced
debt:
(i) refrain from commencing an action against the
debtor to collect the coerced debt; or
(ii) if a collection action has already been
commenced against the debtor, seek the dismissal of the
action.
(3) Cease all garnishment of money from the debtor.
(4) Return to the debtor any payments that were made by
the debtor or received as part of a garnishment of money from
the debtor on the coerced debt.
(5) Notify the debtor that it is ceasing all attempts to
collect the debt from the debtor based on the debtor's claim
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of coerced debt.
(6) Contact each consumer reporting agency to which the
creditor furnished information about the debtor and the
coerced debt and request that the consumer reporting agency
delete the information.
(7) If the creditor does not own the debt and is
collecting the debt for another, the creditor shall notify
the owner of the debt that it has ceased collection
activities against the debtor because the debt is coerced
debt.
(d) Determination that debt is not coerced debt.--If the
creditor determines that the debt described in the petition or
amended petition does not qualify, in whole or in part, as
coerced debt, the creditor shall inform the debtor of:
(1) The reasons why the creditor believes the debt does
not qualify as coerced debt.
(2) The right to challenge the determination as provided
under section 5907 (relating to cause of action).
§ 5907. Cause of action.
(a) Commencement of action.--If the creditor determines in
accordance with section 5906 (relating to determination) that
debt does not qualify, in whole or in part, as coerced debt, the
debtor may, no later than two years after receiving the
determination from the creditor, commence an action in a court
of competent jurisdiction to challenge the determination.
(b) Court determination.--
(1) If the court determines that the debt is coerced
debt, the court shall order that the actions described in
section 5906(c) be taken and may order other appropriate
relief, including attorney fees.
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(2) If the court determines that the debt is coerced
debt and an individual is determined to be the perpetrator of
coerced debt, the court shall order the individual to pay the
debt and may order other appropriate relief, including
attorney fees.
(c) If a creditor approves the petition or amended petition
under section 5906, the creditor may, no later than two years
after making the determination, commence an action in a court of
competent jurisdiction to collect the debt owed by the
perpetrator of coerced debt.
Section 2. This act shall take effect in 90 days.
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