Press Room

An Act relative to fairness in debt collection updates Massachusetts debt collection laws to provide stronger protections for consumers, especially working families. It ensures that people can keep more of their wages, sets clear limits on how long debts can be collected, and makes the legal process fairer and more transparent. 

What the Bill Does

Prohibits Imprisonment Because of Debt. The bill clearly prohibits imprisonment for failure to pay a consumer debt.

Protects Residents’ Livelihoods. The bill makes sure that most of a person’s wages can’t be taken to pay off consumer debts. It protects either 90 per cent of a person’s gross weekly pay, or an amount equal to 65 times the minimum wage—whichever is greater. It also protects child support payments from being garnished.

Lowers the Interest Rate on Debt Judgments. If a collector wins a case in court, they can only charge 3 per cent annual interest per year, helping consumers avoid long-term, compounding debt. The current rate is 12 per cent.

Stops Job Discrimination Because of Debt. Employers cannot punish or refuse to hire someone just because their wages are being garnished to pay off a consumer debt.

Limits How Long Old Debt Can Be Collected. Debt collectors only have five years to take legal action to collect a consumer debt. After that, the debt expires and can no longer be collected.

Closes the Loophole on Restarting the Clock. If a person makes a payment on an old debt after the five-year period has started, that payment won’t restart or extend the deadline for collections.

Sets a Time Limit on Court Judgments. If a collector wins a judgment in court, they must act on it within 10 years, with one possible 10-year renewal. After that, they cannot keep pursuing it.

Prevents Surprise Warrants. Collectors cannot seek a warrant to compel a person to attend a court appearance unless they can provide evidence that the person received notice of the hearing.

Sets Fair Limits on Attorneys’ Fees. The bill creates clear rules for how and when lawyers can charge consumers legal fees in debt cases.

Adds Stronger Enforcement. Violating this law counts as a violation of the state’s consumer protection law, which gives consumers more power to stand up against unfair practices.

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