Have the Rules for Third-party Debt Collectors Changed in Massachusetts?
It has been reported that, without announcement or warning, the regulations applicable to third-party debt collectors in Massachusetts may have changed. While the state’s Division of Banks (DOB) and the state’s Attorney General (AG) have traditionally regulated, respectively, third-party debt collectors and first-party creditors, the AG is reported to have changed its website recently to include third-party debt collectors as entities that it regulates.
Such a change could have significant implications because the AG’s rules differ from the DOB’s rules. For example, the verification requirements under the AG’s rules contain more procedures than the DOB’s rules. We expect industry trade groups to seek clarification from the DOB and AG.