MA Issues Emergency Debt Collection Regulations in Response to COVID-19
On March 26, 2020, the Massachusetts Attorney General’s Office issued emergency regulations concerning debt collection during the pandemic, titled “Unfair and Deceptive Debt Collection Practices During the State of Emergency Caused by COVID-19.” The restrictions on debt collection practices in the emergency regulations do not apply to attempts to collect a debt owed as a result of a loan secured by a mortgage on real property.
The regulations define unfair and deceptive debt collection practices to include the following, for 90 days from the date of the order:
- initiating, filing, or threatening to file any debt collection lawsuit;
- initiating, threatening to initiate, or acting upon any legal or equitable remedy for garnishment or withholding of wages;
- initiating, threatening to initiate, or acting upon any legal or equitable remedy for repossessing a vehicle;
- applying for, causing to be served, or enforcing, or threatening to apply for, cause to be served, or enforce any capias warrant;
- visiting or threatening to visit a debtor’s household;
- visiting or threatening to visit a debtor’s place of employment; and
- confronting or communicating in person with a debtor regarding the collection of a debt in public at any time.
In addition, the regulations prohibit debt collectors from initiating communications to debtors by telephone, either in person or by prerecorded message, for 90 days from the date of the order.
On April 3, 2020, the Attorney Generals’ Office issued guidance in response to frequently asked questions about the emergency regulations. Among other things, the guidance clarifies that the emergency regulations apply to original creditors and entities attempting to collect debt on behalf of debt buyers.
