MA AG Office Issues Guidance on Emergency Debt Collection Regulations

On April 3, 2020, the Massachusetts Attorney General’s Office (AGO) issued guidance in response to frequently asked questions concerning 940 CMR 35:00 titled “Unfair and Deceptive Debt Collection Practices During the State of Emergency Caused by COVID-19”(emergency regulations).  The guidance addressed several topics, including individuals or businesses considered as debt collectors, prohibited collections and communications, and debts excluded from the emergency regulations.

The AGO clarified that the emergency regulations became effective upon filing on March 26, 2020.  The AGO explained that the definition of a debt collector includes a collection on behalf of a first-party creditor, original creditor, or debt buyer; however, a credit union is not considered a debt collector, unless it “uses any name other than his own which would indicate that a third person is collecting or attempting to collect the debt.”

The AGO explained that a creditor or debt collector may continue to accept payments without violating the emergency regulation, but any new action to attach wages or property is prohibited.  Additionally, a creditor or debt collector is prohibited from initiating a telephonic communication with any debtor but may respond to calls initiated by a debtor.

The AGO explained that the emergency regulations do not restrict the use of text messages and emails and do not apply to commercial debts or judgments against a business.

For more information, see WBK’s article on the emergency regulations.