License and Registration

So you received a summons and complaint for a debt collection lawsuit. Before you call the collection attorney, you may want to contact a consumer rights lawyer first. There are two important laws that can drastically impact your collection lawsuit.

The first is MGL c. 93, s. 24A. Under this statute, all debt collectors are required to obtain a license and post a bond with the Commissioner of Banks. If the debt collector doesn't, not only are they not entitled to collect the debt, but any collection attempts is a violation of MGL c. 93A, which entitles you to damages and attorneys fees.

The other law is MGL c. 156D, s. 15.02. Even out of state corporations are required to register with the Secretary of the Commonwealth. This law states that corporations that do business in Massachusetts, but don't register with the Secretary, cannot maintain a lawsuit in a Massachusetts court.

So what does all of this mean for you? If you have been sued by a out of state debt buyer, it could be very likely that that company is neither licensed with the Commissioner of Banks, nor are they registered with the Secretary of the Commonwealth. This means they legally cannot collect the debt against you. In these situations, a lawyer who's experienced in defending debt collection lawsuits can get the case against you dismissed.

I hope this helps and remember to always find out your rights before committing to anything with a debt collector.