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In an effort to protect consumers in Montana from predatory lending practices, new legislation was introduced on July 12, 2025, aimed at regulating debt collection activities and providing added protections for debtors in the state.The Debt Collection Practices Act, sponsored by Representative John Smith, aims to address the growing concerns surrounding debt collection practices in Montana. The legislation requires debt collectors to provide consumers with written notice of their rights and prohibits certain aggressive tactics, such as harassing phone calls and threats of legal action.Additionally, the bill prohibits creditors from engaging in deceptive practices, such as misrepresenting the amount or status of a debt, and requires them to provide accurate and complete information to debtors. Under the new legislation, creditors must also provide debtors with the opportunity to dispute any debt that is being collected.Consumer advocacy groups have praised the new legislation, saying that it will provide much-needed protections for Montana residents who are struggling with debt. "For too long, consumers in Montana have been at the mercy of unscrupulous debt collectors who use aggressive tactics to harass and intimidate them," said Sarah Johnson, director of the Montana Consumer Protection Agency. "This new legislation will help level the playing field and ensure that consumers are treated fairly and with respect."While the legislation has garnered support from consumer advocacy groups, some creditors have expressed concerns about the impact it may have on their ability to collect debts. However, supporters of the bill argue that it strikes a balance between protecting consumers and allowing creditors to pursue legitimate debts.The Debt Collection Practices Act is scheduled to be reviewed by the Montana State Legislature in the coming weeks, where it is expected to receive further debate and amendments before a final vote is taken. If passed, the legislation will provide much-needed protections for Montana consumers and help to regulate debt collection practices in the state.