Massachusetts Proposes New Debt Collection Legislation; Creditors Should Take Note

Massachusetts Attorney General Maura Healey’s Office offered support this week for proposed legislation that would provide greater protections and relief for consumers in her state who are pursued by abusive debt collectors. Her office testified before the Joint Committee on Financial Services today in favor of the Family Financial Protection Act (FFPA), filed by Senator James Eldridge and Representative Paul Brodeur. The bill addresses a number of problematic practices in the debt collection industry that have resulted in consumers being sued on the basis of inaccurate information for debts they do not owe.

“The Act provides desperately needed relief to the poorest and most vulnerable Massachusetts citizens,” said Consumer Protection Division Chief Max Weinstein who offered today’s testimony pdf format of Testimony on Family Financial Protection Act
 before the committee.

When a borrower has not made a payment in months, or years, the original creditor declares the account a loss. Debt buyers purchase old debts for pennies on the dollar, and pursue payments of the entire amount supposedly due on the account.

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