On June 6, 2026, Arkansas Governor Mark Johnson signed into law a new piece of legislation aimed at protecting consumers in debt and providing greater transparency between debtors and creditors. The law, known as the Debtors' Rights Act, will go into effect on July 1, 2026, and is expected to have a significant impact on the way debt collection practices are carried out in the state.Under the new law, debt collectors will be required to provide consumers with detailed information about their debts, including the original creditor, the amount owed, and any fees or interest that have been added. Additionally, debt collectors will be prohibited from engaging in certain aggressive or abusive tactics, such as contacting consumers at unreasonable hours or harassing them with multiple calls in a short period of time.One of the key provisions of the Debtors' Rights Act is the establishment of a debt settlement process, which allows consumers to negotiate with their creditors to come to a mutually agreed-upon payment plan. This process will be overseen by a state-appointed mediator, who will help facilitate communication between debtors and creditors and ensure that both parties are treated fairly.In addition to the debt settlement process, the new law also provides greater protections for consumers facing foreclosure or repossession. Under the Debtors' Rights Act, creditors must provide advance notice to consumers before taking any action to repossess or foreclose on their property, and consumers will have the opportunity to seek a court order to prevent these actions from taking place.Governor Johnson praised the passage of the Debtors' Rights Act as a significant step towards ensuring that consumers in Arkansas are treated fairly and have the opportunity to resolve their debts in a responsible and transparent manner. He stated, "This new legislation is a win-win for both debtors and creditors, as it promotes cooperation and communication between the two parties while also protecting consumers from abusive debt collection practices."Overall, the Debtors' Rights Act represents a significant victory for consumers in Arkansas, providing them with new protections and rights when dealing with debt collectors and creditors. As the law goes into effect next month, it is expected to have a lasting impact on the way debt collection and debt settlement are conducted in the state, leading to more fair and equitable outcomes for all parties involved.