On September 20, 1977, the United States Congress passed a landmark law called the Fair Debt Collection Practices Act (FDCPA). The FDCPA prohibits third party debt collectors from harassing consumers by using abusive language or making physical threats for the purpose of collecting delinquent debts.
Congress also wrote language into the FDCPA that punishes debt collectors for deceiving consumers. The Massachusetts Division of Banks regulates third party debt collectors by setting the statute of limitations for collecting debts, as well as defining the types of extra fees and interest third party debt collectors can charge.
If Action Collection Agency of Boston contacts you concerning an outstanding debt, a licensed Massachusetts attorney can help you determine the most appropriate course of legal action.
What is the Massachusetts Statute of Limitations?
At six years, Massachusetts has set a higher than national average for the time third party debt collectors have to pursue the collection of outstanding debts.
According to the Massachusetts Division of Banks, the six-year statute of limitations for debt collections starts on the last due date from the original credit account or the last date a consumer sent a payment for a credit card or personal loan.
In Massachusetts, debt collectors enjoy the legal right of deciding which date to use for complying with the statute of limitations.
Debt Collection Fees and Interest
Debt collectors like to pad consumer debt bills by adding fees and interest charges to the original debts purchased from creditors for pennies on the dollar. In Massachusetts, third party debt collectors can charge extra fees and interest, but only if they can prove the extra fees are allowed by legal language written into the original credit contract.
Because of the interpretation required to determine the validity of additional debt collection fees, consumers should consult with a Massachusetts licensed FDCPA attorney.
Can a Debt Collector Garnish My Wages?
Massachusetts law allows debt collectors to win judgments that authorize the garnishment of consumer wages for the intent of paying off debts. The percentage of disposable income a debt collector can garnish from a consumer’s paycheck is just 15%, which falls below the 25% rate most other states permit debt collectors to garnish.
State law mandates courts compare the 15% rate with the total calculated by multiplying the federal minimum wage by 50. The lesser of the two amounts represents the amount of money debt collectors can garnish from consumer wages.
Get Legal Help to Fight Action Collection Agency of Boston
A licensed consumer protection law attorney who has considerable experience litigating FDCPA cases can help you fight Action Collection Agency of Boston.
An attorney knows how to file claims against unethical third party debt collectors that can lead to the awarding of actual damages. Speak with an attorney today to stop abusive, threatening, and deceptive debt collector behavior.
*Disclaimer: The content of this article serves only to provide information and should not be constructed as legal advice. If you file a claim against Action Collection Agency of Boston or any other third-party collection agency, you may not be entitled to any compensation.