Massachusetts Debt Collection and Consumer Protection Law

The Massachusetts legislature has enacted supplementary state laws (Mass. Gen. Laws Ann. Ch 93, §§ 24-28, 49, and regulations, 209 C.M.R. §§18.01-18.24 and 940 C.M.R. §§7.01-7.11) to the federal Fair Debt Collection Practices Act of 1977 (15 USCA § 1692 et seq.). The state laws supplement the FDCPA by providing additional protections to Massachusetts consumers.

Massachusetts law is broader than the FDCPA in that portions of it also apply to "creditors" and not just to "collectors."

Massachusetts law prohibits, among other things, the following acts by debt collectors: various types of misrepresentation, certain disclosures of a debtor's indebtedness to third parties, contacting a debtor's employer if the employer does not allow such contacts, publication of "dead-beat-debtor" lists, public confrontations with the debtor, contacting the debtor at home more than twice per week or anywhere else more than twice per month, calling the debtor between 9:00pm and 8:00am and threatening, profane, obscene, embarrassing or harassing communications by the debt collector.

In addition, in certain circumstances, Massachusetts law provides consumers with private remedies against particular debt collectors who violate the state's laws and engage in unfair or deceptive acts as defined by statute (giving consumers the right to sue offending debt collectors).

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For more information on Massachusetts debt collection law, click on the links below.

Links:

• Fair Debt Collection from the Massachusetts Attorney General
• 940 CMR 7.00: Debt Collection Regulations
• 209 CMR 18.00: Conduct Of The Business Of Debt Collectors and Loan Servicers
• Mass. General Law, Part 1, Title XV, Chapter 93, Sections 24-28 & Section 49
  (Scroll down to Section 24 - 28 COLLECTION AGENCIES
• Section 24. Collection agencies; license; bond; regulations.
• Section 24A. Term of license; bond; registration; rules and regulations
• Section 24B. License; application; fee; terms
• Section 24C. Registration of third-party loan servicer; fees
• Section 24D. Investigation by commissioner; business records; records of investigation; penalties
• Section 25. Amount, form and provisions of bond; applications for renewal.
• Section 26. Sureties; approval; filing; cancellation; notice
• Section 27. Record of bonds; open to public inspection
• Section 28. Penalties.
• Section 49. Debt collection in an unfair, deceptive or unreasonable manner
• Massachusetts Courts

Federal Law: Fair Debt Collection Practices Act (FDCPA)

The FDCPA is a federal law that provides residents of all states with considerable rights and protections against abusive, unfair and deceptive debt collection practices by debt collectors. Examples of debt collection practices prohibited by the FDCPA include using profane language, lying and calling a debtor at work if the debt collector knows the employer disapproves. The debt collector must also protect the debtor’s privacy by not disclosing the debt to others such as friends, family members or co-workers.

A debt collector, as defined in the FDCPA, is anyone who regularly collects debts on behalf of an original creditor. Original creditors, such as credit card companies and banks, are not considered debt collectors when they attempt to collect debts owed directly to them. Therefore, original creditors are not covered under the FDCPA.

The FDCPA covers only consumer debt, which includes personal, family and household debt, but not business debt or any debt incurred for business purposes. Common types of consumer debt are credit card debt, automobile loans, home loans, utility bills and medical debt.

For more information on the FDCPA, including what debt collectors can and cannot do and what you can do if you believe a debt collector violated your rights under the FDCPA, please visit our FDCPA information page.