The Office of the Attorney General for the Commonwealth of Massachusetts has issued additional guidance and answers to some Frequently Asked Questions following the enactment of a series of emergency regulations related to debt collection that were put into place because of the coronavirus pandemic.
A copy of the guidance can be accessed by clicking here.
The emergency regulations changed the definition of debt collector and put into place a number of restrictions, the most important being that the initiation of a communication with an individual via an outgoing phone call is considered to be an unfair or deceptive act or practice for the duration of the state of emergency that has been declared in Massachusetts. As well, under the new regulations, it is also now considered an unfair, or deceptive act or practice if collectors and creditors:
- file or threaten to file a lawsuit
- initiate or threaten to garnish an individual’s wages or seize other property or funds to repay a debt
- initiate or threaten to have a vehicle repossessed
- visit or threaten to visit the house of an individual with an unpaid debt
- communicate in person with an individual with an unpaid debt in a public place
Among the answers provided by the guidance are:
- Creditors, first-party collectors, and entities that collect on behalf of debt buyers are considered collectors for the purposes of the emergency regulations.
- Collectors are allowed to answer the phone if a consumer initiates a phone call, and may call a consumer back if requested to do so by a consumer.
- Text messages and emails are not prohibited under the emergency regulations. All communications must still comply with Massachusetts law regarding contact frequency.
