CEO DATELINE - Association sues Massachusetts over halt in debt collections
CEO DATELINE - Association sues Massachusetts over halt in debt collections
- April 27, 2020 |
- Walt Williams
An association representing credit collection professionals is suing Massachuse tts over an emergency order preventing collection agencies from contacting individuals during the COVID-19 pandemic.
Consider joining CEO Update. Membership gives full access to the latest intelligence on association management, career advancement, compensation trends and networking events, as well as hundreds of listings for senior-level association jobs.
State Attorney General Maura Healey announced in March her agency had issued an emergency regulation prohibiting creditors from engaging in methods of debt collection that can require people to leave their homes or have in-person contact. It also prohibited debt collection agencies and debt buyers from making unsolicited debt collection telephone calls to consumers. The order will remain in effect until late June.
"The COVID-19 crisis has caused substantial medical and financial hardship for families in Massachuse tts, and we want to do everything we can to protect them from further harm," Healey said in a statement. "This emergency regulation puts additional restrictions in place to prevent debt collectors and creditors from harassing our residents."
ACA International announced April 21 that it had sued the state in federal court, although it made details about the legal action only available to members. However, the law firm Hinshaw noted the association's complaint contends that the regulation does not treat debt collectors fairly, has caused significant economic harm to its members, and puts collectors at a heightened risk of litigation.
ACA is asking the court to strike down the regulation. It is also seeking an injunction to prevent enforcement of the order.
MORE CEO DATELINE