Debt Collections
The Division of Banks (Division) has supervised debt collectors for many years. The Division has become aware of various unfair practices occurring within the debt collection industry by entities known as “debt buyers”. Debt buyers purchase delinquent and very often old debt and then attempt to collect on those debts. On June 16, 2006, the Division issued a letter to the debt collection industry in Massachusetts advising them that debt buyers that meet the definition of a “debt collector” would be subject to the Commonwealth’s Debt Collection Law (G.L. c. 93, ss. 24 to 28) and its implementing regulations at 209 CMR 18.00 and would be required to obtain a license from the Division in order to collect debt from consumers in Massachusetts.
For consumers, challenging personal matters or changed employment circumstances can make paying bills on time difficult. Continued missed payments may result in an account being placed into the collection process. The Division released consumer guidance to help consumers understand their rights and responsibilities if they are contacted by a debt collector. Check the links below for further information.
Selected Opinion 06-059 - Attorney-at-law Exclusion and Applicability of the Debt Collection Law to Attorneys - October 13, 2006
Selected Opinion 06-060 - "Passive" Debt Buyer Exemption from Debt Collector License - October 13, 2006
Debt Collection - Frequently Asked Questions