Debt Collection Laws in Massachusetts

Federal debt collection laws

The FDCPA affords all Americans certain rights when unpaid debts are being pursued by bill collectors.

This act prohibits debt collectors from using deceptive or abusive debt collection practices, such as contacting you at odd hours, calling you repeatedly or making false threats regarding legal actions they plan to take. Debt collectors are also barred from revealing the existence of unpaid debts to other parties, both on social media and through direct forms of communication.

According to the Consumer Financial Protection Bureau (CFPB), the FDCPA requires debt collectors to contact your attorney instead of reaching out to you personally if you have legal representation already in place.

Also, note that the FDCPA lets you stop all contact from debt collectors by informing them in writing that you do not want to receive communications any longer. If the debt collector continues its communications, you can sue them under the FDCPA and receive coverage of your legal fees as well as damages.

» MORE: How to handle bill collectors

Massachusetts debt collection laws

The state of Massachusetts has several laws and regulations in place to regulate debt collectors. You can find the text for these protections within Massachusetts General Laws Chapter 93 § 49, and within the Massachusetts debt collection regulations at 940 CMR 7.00.

According to the official website of the Commonwealth of Massachusetts, state debt collection laws apply to original creditors and their attorneys, third-party debt collection agencies and "buyers of delinquent debt who hire third parties, including attorneys, to collect debt on their behalf."

Debt collection practices

State law says that debt collectors are legally allowed to contact people other than the debtor to try to get their contact information, but that they cannot disclose information about the debts owed to third parties.

Debt collection activities prohibited under Massachusetts state law include:

• Calling you at home more than twice for each debt over a seven-day period, or more than twice for each debt in a 30-day period anywhere other than at home
• Calling you at work after you requested them to stop in writing
• Calling you at work for 10 days after you orally requested they stop
• Calling you without identifying themselves as debt collectors
• Contacting you directly when they know you are being represented by an attorney
• Calling you before 8 a.m. or after 9 p.m. without permission
• Making false, deceptive or misleading statements when attempting to collect a debt
• Trying to collect amounts that are different from the legal amount of debt owed
• Threatening imprisonment or arrest for nonpayment
• Attempting to collect on a time-barred debt without disclosing that it is time-barred
• Using profane or obscene language to collect on a debt
• Using debt collection activities that cost you money (e.g., collect phone calls)
• Telling third parties about your debt without written consent
• Asking debtors for a post-dated check
• Visiting your home outside of your normal waking hours without consent
• Visiting your home more than twice in any 30-day period without consent

Statute of limitations

In the state of Massachusetts, the statute of limitations on consumer debt is six years. This timeline represents how long a debtor can be taken to court for the amounts they owe, and it applies to written and oral contracts as well as credit card debt.

Licensing and registration

Original creditors trying to collect on a debt in the state do not need to be licensed to do so. However, they still must follow FDCPA and state debt collection laws.

Debt collection agencies and debt buyers do require licensure from the Massachusetts Division of Banks (DOB).

Required notices to debtors

Within five days of initial contact with a consumer, debt collectors in Massachusetts are legally required to supply written communication with the following information:

• The amount of debt owed
• Name and contact information of the collection agency trying to collect
• Name of the original creditor
• Information on how you can dispute the debt if you believe it's not yours

From there, Massachusetts residents have the right to dispute debts in writing within 30 days if they believe it is not theirs or do not recognize it. You can demand proof of the debt and a copy of the original bill or statement that shows the amount owed.

If a debt collector supplies proof of the debt or "validation," such as a copy of the bill, they can continue trying to collect the debt. If they cannot provide proof, they can’t call or contact to collect the debt until proof is obtained.

If you do not dispute a debt within 30 days after receiving this notice, it will be considered valid, and the bill collector can move forward with legal collection activity.

Enforcement and penalties

U.S. residents can take bill collectors to court if they violate their laws under the FDCPA. If the debtor ultimately wins their case, they can get the debt collector to pay their attorney's fees as well as damages.

If you're having trouble with debt collection and believe your rights have been violated on a federal level, you can submit a complaint with the CFPB.

Massachusetts residents can also sue bill collectors for violating state law.

Wage garnishment laws and limits

In Massachusetts, wage garnishment is limited and generally requires a court judgment before a creditor can collect from your paycheck. After a creditor files a lawsuit and wins, the court may issue a wage execution order.

The process typically includes:

• Court judgment: A creditor must first sue and obtain a judgment
• Notice to the debtor: You are notified and may have the opportunity to respond or claim exemptions
• Wage execution order: If approved, your employer is directed to withhold part of your wages

Massachusetts law places strict limits on how much can be taken:

• Protected income threshold: The first portion of your wages is protected, based on a multiple of the state minimum wage
• Maximum garnishment: Creditors can only take a limited percentage of disposable earnings above the protected amount
• Continuous garnishment: Payments continue until the debt is satisfied or the order ends

Certain types of income, such as Social Security, disability benefits and unemployment compensation, are generally protected from garnishment.

Property and income exemptions

Massachusetts law provides strong protections for certain property and income, helping ensure you can maintain basic living standards even during debt collection.

Key exemptions include:

• Homestead exemption: Protects a portion of the equity in your primary residence from creditors
• Vehicle exemption: Allows you to protect a certain value in your car, which may be necessary for work and daily life
• Retirement accounts: Most tax-qualified retirement plans, such as 401(k)s and IRAs, are protected
• Public benefits: Social Security, disability income, unemployment benefits and other public assistance are generally exempt
• Wages below threshold: A portion of your weekly income is protected from garnishment
• Personal property: Items like household goods, clothing and basic furnishings are typically exempt

These exemptions can vary based on your situation, so it’s important to review your eligibility and claim any protections that apply.

» MORE: How to get out of debt

FAQ

Bottom line

Having unpaid bills can make life considerably more stressful, and the problems only compound once debt collectors start knocking on your door. Fortunately, both state and federal laws protect your rights in Massachusetts, and you even have the right to tell debt collectors to leave you alone.

If you do that, however, you should know that you still owe the money and you can still be sued for unpaid debts in court. That's why your best bet is dealing with debt head-on, even if that means getting on a payment plan or reaching out to an attorney or credit counseling agency for help.