AG slams brakes on debt collections
State Attorney General Maura Healey on Friday said her office has filed an emergency regulation to protect consumers from unfair and deceptive debt-collection practices during the COVID-19 crisis.
The new regulation prohibits creditors from engaging in methods of debt collection that can require people to leave their homes or have in-person contact, including filing new lawsuits against Massachusetts consumers, visiting their homes or places of work, or repossessing their cars, among other protections. The AG’s emergency regulation also prohibits debt-collection agencies and debt buyers from making unsolicited debt-collection telephone calls to consumers. The regulation will remain in effect for 90 days or until the conclusion of the declared state of emergency.
“The COVID-19 crisis has caused substantial medical and financial hardship for families in Massachusetts, and we want to do everything we can to protect them from further harm,” Healey said in a statement. “This emergency regulation puts additional restrictions in place to prevent debt collectors and creditors from harassing our residents.”
The regulation contains protections that apply to all creditors and prohibits them from deceptive practices in pursuing the payment of a debt including:
• filing any new collection lawsuit;
• garnishing wages, earnings, properties or funds;
• repossessing vehicles;
• applying for or serving a warrant;
• visiting or threatening to visit the household of a debtor;
• visiting or threatening to visit a debtor’s place of employment;
• confronting or communicating in person with a debtor for the collection of a debt in any public place.
The regulation also prohibits debt-collection agencies and debt buyers from making unsolicited debt-collection telephone calls to Massachusetts consumers for the next 90 days, unless the state of emergency ends before that time.
The AG’s Office has prioritized taking legal action against problem debt collectors in recent years. In November 2019, Portfolio Recovery Associates LLC agreed to a $4 million settlement to pay back thousands of consumers who were subject to the company’s debtcollection practices.
The AG’s Consumer Protection Division encourages people to call 617-727-8400 or to file a complaint at www.mass.gov/how-to/filea-consumer-complaint if they witness or experience aggressive debt collection or predatory lending during the COVID-19 pandemic.
In response to the coronavirus crisis, Healey last week also issued an emergency regulation to prohibit pricegouging of essential products like hand sanitizer, face masks and gloves.
For information about how the AG’s Office can assist you during this crisis, visit her COVID-19 resources page at www.mass.gov/guides/resources-duringcovid-19.