Have you ever had a debt go into collections? Did you know that a lot of consumer protections ‘fall off’ when the debt is sold to a third party? 23% of Mass residents are dealing with this, and the House has a chance to help.
In response to the Massachusetts Senate passing the Family Financial Protection Act last week, community advocates called on the House:
“We applaud the leadership of the Senate, especially lead sponsor Senator Jamie Eldridge, in passing the Family Financial Protection Act (S146) by a vote of 29-9. Abuses in the debt collection process are widespread. 23 percent of Massachusetts residents have debts in collection, with an average debt of $4,600. Massachusetts residents deserve a fair and transparent process to repay their debts, which the current system doesn’t allow. The current system allows out-of-state debt buyers to file large numbers of debt collection cases, straining our local court system, often in pursuit of debts that may not be collectible because they are too old, or inaccurate. Residents are trapped by exorbitant fees, wage garnishment, and/or arrest warrants during this process, often leaving them in financial ruin.
We have to stop allowing debt buyers from benefiting from an unregulated system at the expense of our residents. Families facing hardship from unemployment or medical expenses, deserve more; they deserve the security of the Family Financial Protection Act. Since 2009, seven states have changed their laws to protect consumers from debt collection abuses, and Massachusetts should be next. We urge the House to follow the Senate’s lead for swift passage to protect consumers in Massachusetts and our economy.”
We are grateful to have the support of Attorney General Maura Healey on this bill.
For more information, see “Massachusetts Debt Trap; How Private Debt Buyers are Using the Courts to Hurt Families”
Advocates include The Midas Collaborative, Economic Mobility Pathways, Greater Boston Legal Services, the National Consumer Law Center on behalf of its low-income clients, the Center for Responsible Lending, and the Jewish Community Relations Council.
