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If you’ve fallen behind on your bills or are being contacted by a debt collector, it’s essential to understand your rights under Massachusetts debt collection laws. Knowing how the law protects you from harassment and unfair practices can make a significant difference in how you respond to collection efforts—and how much stress you experience during the process.
At Logan A. Weinkauf, P.C., we guide individuals and families throughout Massachusetts who are facing debt-related challenges. Whether you’re already in collections or just want to understand your rights better, this article breaks down what you need to know about Massachusetts debt collection laws and how to protect yourself.
Understanding Massachusetts Debt Collection Regulations
Massachusetts has some of the strongest consumer protection laws in the country when it comes to debt collection. These laws are governed primarily by:
- The Massachusetts Consumer Protection Act
- State Attorney General’s Debt Collection Regulations (940 CMR 7.00)
- The Federal Fair Debt Collection Practices Act
Together, these regulations limit what debt collectors can say and do, how often they can contact you, and what rights you have to dispute debts.
What Debt Collectors Can—and Cannot—Do
In Massachusetts, debt collectors must follow strict rules when contacting consumers. Some of the key protections include:
- Contact Restrictions: Collectors may not call more than twice in seven days about the same debt. They also cannot call your workplace if they’ve been told not to.
- Timing: Debt collectors may only call between 8 a.m. and 9 p.m., unless you give permission for other times.
- Harassment Prohibited: Any use of threatening language, public shaming, or intimidation is illegal.
- Misrepresentation: Collectors may not lie about the amount you owe, pretend to be a government official, or falsely threaten arrest or legal action.
- Written Notice Requirement: Within five days of first contacting you, a debt collector must send you a written notice of the debt, including the amount owed and the name of the creditor.
Violations of these laws can result in fines or legal action against the debt collector. In some cases, consumers can also sue for damages under Massachusetts law.
Your Right to Dispute the Debt
If you believe the debt is not yours or is incorrect, you have the right to dispute it in writing within 30 days of the initial written notice. Once you dispute the debt:
- The collector must cease collection efforts until they verify the debt and send you proof.
- They cannot resume communication unless they’ve fulfilled that obligation.
This is a powerful tool for consumers, especially in cases of mistaken identity or outdated debts.
Statute of Limitations on Debt Collection in Massachusetts
Another key aspect of Massachusetts debt collection law is the statute of limitations—how long a creditor or debt collector has to sue you over a debt. For most debts in Massachusetts:
- Credit card and personal loan debt: Six years
- Judgment debt: 20 years (if the creditor sues and obtains a judgment)
Once the statute of limitations expires, a debt is considered “time-barred,” meaning collectors can still try to collect voluntarily, but they cannot sue you for payment.
It’s important to note that making a payment or acknowledging the debt in writing may restart the statute of limitations. Always speak with an attorney before engaging with old debts.
Wage Garnishment and Legal Action
If a debt collector or original creditor does take legal action and wins a judgment against you, they may seek wage garnishment, bank levies, or liens against your property. However, Massachusetts has exemptions to protect some of your income and assets.
For example:
- Wages: Creditors generally can garnish no more than 15% of your disposable income.
- Public benefits and certain pensions are exempt from garnishment.
- Homestead protections may shield your primary residence from certain types of creditor claims.
That said, you must be notified of any legal proceedings in advance and given the opportunity to respond in court. Ignoring notices could result in default judgments, which make it much harder to fight back later.
How to Protect Yourself from Illegal Debt Collection Practices
Here are some steps you can take to safeguard your rights:
- Document Everything: Keep records of all calls, letters, voicemails, and texts from debt collectors.
- Request Written Verification: Always ask for written proof of the debt if you have any doubts.
- Don’t Ignore Legal Notices: If you are served with a lawsuit or receive court paperwork, respond promptly and consider seeking legal representation.
- Know When to Get Help: If you’re being harassed, threatened, or sued over a debt, it’s time to talk to a lawyer.
When to Call a Massachusetts Debt Relief Lawyer
Facing debt collection is never easy. The laws are complex, and collectors often bank on the fact that consumers don’t fully understand their rights. That’s where Logan A. Weinkauf, P.C., comes in.
Whether you’re dealing with aggressive collectors or just want to understand your options, we’re here to help you reclaim control over your financial future. Contact us today for a confidential consultation.