Debt Collection Judgments Now Good for Ten Years

TL;DR

Arizona has passed House Bill 2240, doubling the validity period of debt collection judgements from five years to ten years, causing frustration and limiting consumer's ability to escape past financial mistakes.

Transcript

• Hey everybody, John Skiba here from the Consumer Warrior Project. I wanted to do a video today on a new law that was recently passed in the state of Arizona, House Bill 2240, which is absolutely terrible for Arizona consumers. I wanted to explain what it was as it relates to civil judgements that debt collectors give when they go to court and how... Read More

Key Insights

• ❓ Arizona's House Bill 2240 extends the validity period of debt collection judgements from five to ten years.
• 👮 This law primarily benefits out-of-state junk debt buyers who profit from collecting on debts.
• 👮 Arizona's reputation as a creditor-friendly state is further reinforced by this law.
• 😀 Consumers may face a 16-year period where they are unable to escape past financial mistakes.
• 👮 The law does not provide much relief for run-of-the-mill civil lawsuits by creditors.
• 🤨 House Bill 2240 raises questions about who was behind the push for this change, with lobbyists for junk debt buyers being a likely influence.
• ❓ It remains unclear whether House Bill 2240 applies retroactively to previously entered judgements.

Questions & Answers

Q: How does House Bill 2240 impact consumers in Arizona?

House Bill 2240 extends the validity period of debt collection judgements to ten years, making it harder for consumers to escape past financial mistakes and limiting their ability to rebuild their financial health.

Q: Who does House Bill 2240 primarily benefit?

House Bill 2240 mainly benefits out-of-state junk debt buyers who purchase debts for low prices and then sue Arizona residents in large numbers. This law allows them to collect on debts and take money out of the state.

Q: Can debt collection judgements be renewed indefinitely under House Bill 2240?

Yes, debt collectors have the ability to renew the judgement every ten years for an indefinite period. This means that consumers may be burdened with debt for an extended period of time.

Q: Does House Bill 2240 apply retroactively?

While the statute does not explicitly mention retroactivity, it is believed that judgements entered prior to August 3rd, 2018, will be subject to the previous renewal period of five years, while judgements entered after that date will be subject to the ten-year period.

Summary & Key Takeaways

• House Bill 2240 in Arizona extends the validity period of civil judgements obtained by debt collectors from five years to ten years.

• Debt collectors have the ability to renew the judgement every ten years indefinitely, creating a 16-year period where consumers cannot escape their financial mistakes.

• This law primarily benefits out-of-state junk debt buyers, who sue Arizona residents in large volumes and profit from collecting on debts.