In recent Mississippi debtor and creditor news, the state legislature passed new legislation on July 6, 2025, aimed at protecting consumers from predatory lending practices and providing additional rights and safeguards for debtors.The Debt Collection Consumer Protection Act, sponsored by Rep. Sarah Thompson, R-Mississippi, was signed into law by Governor John Smith following overwhelming bipartisan support. The bill seeks to increase transparency and accountability in the debt collection process while also imposing stricter regulations on creditors.One of the key provisions of the new law is the requirement for creditors to provide detailed and accurate information to debtors regarding their outstanding debts. This includes the amount owed, the original creditor, and any fees or interest that have been added to the debt. Creditors must also provide notice to debtors before taking any legal action, giving them the opportunity to dispute the debt or seek a payment plan.Additionally, the Debt Collection Consumer Protection Act prohibits creditors from engaging in abusive or harassing behavior when attempting to collect a debt. This includes threats of violence, using obscene language, or contacting debtors at unreasonable hours. Violations of these provisions can result in fines and penalties for creditors.The new legislation also extends protections to debtors facing bankruptcy, including limitations on the ability of creditors to seize property or garnish wages. Debtors will have the right to request a repayment plan that is affordable and manageable, and creditors will be required to work in good faith to find a solution that works for both parties.Advocates for consumer rights and financial literacy have praised the passage of the Debt Collection Consumer Protection Act, hailing it as a significant step forward in ensuring fair treatment for Mississippi residents struggling with debt. They hope that the new law will serve as a model for other states seeking to provide more comprehensive protections for debtors.Overall, the new legislation represents a positive development for Mississippi debtors and creditors alike, signaling a commitment to promoting fairness and accountability in the lending and debt collection industries. With these new protections in place, Mississippi residents can feel more confident in their ability to navigate the complexities of consumer debt while also holding creditors accountable for their actions.