AG Healey puts Emergency Regulation in place to protect Citizens from Debt Collection problems in light of COVID-19
Early on April 16, 2020, Massachusetts Attorney General Maura Healey announced regulation 940 CMR 35.00. This new regulation strives to protect the citizens of Massachusetts during the state of emergency. Debt collectors could potentially use the stimulus checks to harass people owing money. They could also exacerbate financial strain in a time where many people are not making as much money as they would otherwise. If a debt collector tries to initiate legal proceedings or tries to physically collect debts, there is a chance that COVID-19 could spread. Collectors are also known to harass citizens, making a stressful time even more stressful.
This regulation comes on the heels of another emergency regulation, an amendment to regulation 940 CMR 3:18, that prevents price-gouging on products necessary for public health and safety. This includes gasoline and petroleum products under the original regulation 940 CMR 3:18. Shortages of hand sanitizer, gloves, face masks, and other hygienics could lead retailers to increasing their prices dramatically. This would make it harder to obtain goods that are already hard to obtain, and cause financial hardship during a time of financial strain.
How the new Regulation works to protect the Commonwealth
How does Healey’s regulation work? It prevents debt collectors from filing new lawsuits, repossessing vehicles, garnishing wages and earnings, visiting households and workplaces of debtors, and from confronting or communicating with debtors in person. There is also to be a moratorium on unsolicited collection calls for the next 90 days, unless the state of emergency ends sooner.
Healey seeks to protect Stimulus Check money
The CARES Act passed earlier this year by Congress has authorized stimulus checks to many Americans. The amount varies based on a number of factors, but often maxes out at $1200 for each individual. This money is to be sent to Americans to alleviate financial strain. The stimulus is meant to assist families when their income is halted or lessened due to COVID-19.
AG Healey hopes to protect this stimulus money. The government has authorized banks to seize stimulus money to collect debts, and AG Healey believes this to be against the purpose of the stimulus. The AG stated that the checks are supposed to help families, not enrich debt collectors. She has called upon President Trump to take action to prevent the debt collectors from taking stimulus money. Along with a number of other attorney generals, Healey issued guidance to the federal government in hopes that they act to protect the American people.
Further Inquiries
If you have further questions you can contact us at:
McNamara & Yates, P.C., PO Box 2154, Mashpee, MA 02649.
(p) 508-888-8100
(e) office@cape-law.com
If you wish to file a complaint against a debt collector, you may do so online at the Massachusetts Attorney General’s website.
