There are four different kinds of debt collectors in Massachusetts.
Debt Collector - A debt collector is any person whose business is to collect or attempt to collect a debt owed to another person and/or company. All debt collectors are subject to federal and state debt collection laws and regulations. The debt collector must also be licensed by the Division of Banks (DOB).
Debt Buyer - A debt buyer purchases debts that are already in default and then attempts to collect on said debt. Debt buyers are also subject to all state and federal laws and regulations regarding debt collection and must be licensed through the DOB.
Passive Debt Buyer - A passive debt buyer does not try to collect on the debts they purchase. They only purchase debts for investment purposes. They can hire a licensed debt collector or attorney to collect the debt. A passive debt buyer does not need to be licensed with the DOB if they hire a licensed debt collector or attorney to collect the debt.
Attorney Collecting Debt - Attorneys licensed to practice law in Massachusetts do not need a separate license from the DOB to collect debt on behalf of their clients. An attorney collecting debt must adhere to the Supreme Judicial Court’s Rules of Professional Conduct, the Board of Bar Overseers’ disciplinary oversight, restrictions imposed by the Fair Debt Collection Practices Act (FDCPA), and the Attorney General’s office debt collection regulations.
If you’re contacted about a debt, you do not need to provide any personal information, including account numbers or social security numbers, until you have requested written verification of the debt in question and checked the license of the debt collector with the Division of Banks or, if contacted by an attorney, the Bar status of the said attorney.
Once this information is confirmed, you should create a paper trail of all your correspondences. Make sure your requests and responses are in writing. Keep a record of the date, time, and individuals’ names that are contacting you about the debt. If you do owe a debt, create a payment plan for the undisputed debt that is reasonable to your financial situation and provide this plan to the debt collector in writing.
Rules for Debt Collectors
There are many rules that a debt collector must follow. If you have any issues with a debt collector or believe they have violated these rules, you can contact the Division of Banks or submit a complaint.
A Debt Collector MUST:
Tell you the amount of debt and the name of the creditor collecting the debt. This must occur during the first communication or within five days.
During the first communication, they must disclose they are attempting to collect a debt and any information gathered will be used for such purposes.
Tell you the name of the creditor or debt collection company, and the name of the person contacting you.
Tell you within 30 days the original name and address of the creditor if asked.
Communicated directly with your attorney if you’ve provided their information to the debt collector
Notify you within 30 days of initial contact of your right to not have debt collection calls made to your place of employment.
A Debt Collector CAN:
Assume all debts valid if not disputed within 30 days
Contact any person, including friends and family, to obtain your address or contact information
Call your home or visit within normal working hours, 8 AM to 9 PM. Visits can only occur two times within seven days.
Collect expenses more than the amount owed.
A Debt Collector CANNOT:
Discuss your debt with a third party without your consent or judicial authority
Imply they are affiliated with the federal government or any state. This includes sending any documentation falsely stating they are authorized by any court or government agency.
Use or the threat of physical violence and criminal acts to collect on the debt, including harm to your reputation or property
Seize certain assets or property for the debt
There are also extra protections for people over 60 years old and the handicapped.
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